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 lists correctly identifies the four main categories of income in accounting?

Interest income, dividend income, rental income, and royalty income

Operating income, gross income, net income, and retained earnings

Revenue, expenses, assets, and liabilities

Earned income, portfolio income, passive income, and capital gains

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Verified step by step guidance

Step 1: Understand the context of the question. The problem is asking about the four main categories of income in accounting, which are distinct classifications used to describe how income is generated and categorized.

Step 2: Review the provided options. Each option lists different categories, and the goal is to identify the correct set of categories based on accounting principles.

Step 3: Clarify the correct answer. The correct categories of income in accounting are Earned income, Portfolio income, Passive income, and Capital gains. These categories represent different sources and types of income.

Step 4: Define each category for better understanding: Earned income refers to wages or salaries from employment; Portfolio income includes income from investments like dividends and interest; Passive income is generated from activities like rental properties; Capital gains arise from the sale of assets at a profit.

Step 5: Compare the correct answer with the other options to understand why they are incorrect. For example, 'Revenue, expenses, assets, and liabilities' are elements of the accounting equation, not income categories. Similarly, 'Operating income, gross income, net income, and retained earnings' are financial metrics, not classifications of income.