Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

Which of the following activities results in an increase in a firm's cash?

Purchasing equipment with cash

Declaring a cash dividend

Paying off a loan

Issuing common stock for cash

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Verified step by step guidance

Step 1: Understand the concept of cash inflows and outflows. Cash inflows refer to activities that bring cash into the firm, while cash outflows refer to activities that use or reduce the firm's cash.

Step 2: Analyze each activity listed in the problem to determine whether it results in a cash inflow or outflow. For example, purchasing equipment with cash is a cash outflow because the firm is spending cash to acquire the equipment.

Step 3: Evaluate the activity of declaring a cash dividend. Declaring a dividend typically results in a cash outflow because the firm is distributing cash to its shareholders.

Step 4: Consider the activity of paying off a loan. This is also a cash outflow because the firm is using cash to settle its debt obligations.

Step 5: Examine the activity of issuing common stock for cash. This results in a cash inflow because the firm receives cash in exchange for issuing shares of its stock to investors.