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 NOT an example of a transaction in accounting?

A company purchases inventory for cash.

A business pays salaries to its employees.

A manager estimates next year's sales revenue.

A customer pays for goods previously sold on credit.

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Verified step by step guidance

Step 1: Understand the concept of a transaction in accounting. A transaction is any event that has a financial impact on the business and can be measured in monetary terms. Transactions are recorded in the accounting system.

Step 2: Analyze each option provided in the problem to determine whether it qualifies as a transaction. For example, purchasing inventory for cash involves a financial exchange and is measurable, so it is a transaction.

Step 3: Evaluate the option where a business pays salaries to its employees. This involves a financial outflow and is measurable, making it a transaction.

Step 4: Consider the option where a customer pays for goods previously sold on credit. This involves a financial inflow and affects accounts receivable, qualifying it as a transaction.

Step 5: Examine the option where a manager estimates next year's sales revenue. Since this is a projection and does not involve an actual financial exchange or measurable event, it is NOT a transaction in accounting.