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

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is an activity a company performs to promote a product or service?

Depreciation of equipment

Advertising expenses

Inventory valuation

Accrued interest calculation

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Verified step by step guidance

Understand the nature of the question: The problem is asking which activity is directly related to promoting a product or service. This requires identifying the activity that aligns with marketing or promotional efforts.

Analyze each option: Depreciation of equipment is an accounting process to allocate the cost of tangible assets over their useful life, not related to promotion. Inventory valuation is the process of determining the value of inventory, which is part of cost accounting, not promotion. Accrued interest calculation deals with interest expenses or revenues, unrelated to promotion.

Focus on the correct option: Advertising expenses are directly tied to promoting a product or service. These expenses include costs for advertisements, marketing campaigns, and promotional activities aimed at increasing sales or awareness.

Relate the concept to financial accounting: Advertising expenses are recorded as operating expenses on the income statement. They are part of selling, general, and administrative expenses (SG&A), which reflect the costs incurred to promote and sell products or services.

Conclude the reasoning: Based on the analysis, advertising expenses are the activity that a company performs to promote a product or service. The other options are unrelated to promotional activities and serve different accounting purposes.