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

Generally, which of the following does NOT correctly categorize the type of income in accounting?

Interest earned on investments is classified as non-operating income.

Revenue from sales is classified as operating income.

Dividends received are classified as non-operating income.

Gains from the sale of fixed assets are classified as operating income.

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Verified step by step guidance

Step 1: Understand the concept of income categorization in accounting. Income is generally classified into operating income and non-operating income. Operating income arises from the primary business activities, while non-operating income comes from secondary or incidental activities.

Step 2: Review the examples provided in the problem. Interest earned on investments and dividends received are typically classified as non-operating income because they are not directly related to the core business operations.

Step 3: Recognize that revenue from sales is classified as operating income because it is directly related to the primary business activities of selling goods or services.

Step 4: Analyze the statement about gains from the sale of fixed assets. Gains from the sale of fixed assets are generally classified as non-operating income because they result from incidental activities, not the core business operations.

Step 5: Conclude that the statement 'Gains from the sale of fixed assets are classified as operating income' does NOT correctly categorize the type of income in accounting, as it misclassifies non-operating income as operating income.