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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Struggling with Financial Accounting?

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Multiple Choice

Buying a new car can create a financial challenge because:

It eliminates the need for future accounting records.

It automatically increases your net income.

It often requires a significant outflow of cash or financing, impacting personal or business budgets.

It is always recorded as revenue in financial accounting.

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Verified step by step guidance

Understand the context of the problem: Buying a new car is a financial decision that impacts personal or business budgets. It is not directly related to revenue or net income in financial accounting.

Clarify the incorrect options: The statement 'It eliminates the need for future accounting records' is false because purchasing a car often requires ongoing accounting for depreciation, maintenance, and financing costs.

Evaluate the option 'It automatically increases your net income': This is incorrect because buying a car is an expense or investment, not a revenue-generating activity.

Analyze the correct answer: 'It often requires a significant outflow of cash or financing, impacting personal or business budgets.' This is accurate because purchasing a car typically involves a large upfront payment or financing, which affects cash flow and budget planning.

Understand why 'It is always recorded as revenue in financial accounting' is incorrect: Buying a car is recorded as an asset or expense, not revenue, in financial accounting. Revenue refers to income earned from business operations, not expenditures.