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 included in the compensation of employees in financial accounting?

Interest paid on loans

Wages and salaries paid to employees

Payments to suppliers for inventory

Dividends paid to shareholders

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Verified step by step guidance

Understand the concept of 'compensation of employees' in financial accounting. It refers to the total remuneration paid to employees for their work, including wages, salaries, bonuses, and other benefits.

Analyze each option provided in the question to determine whether it fits the definition of 'compensation of employees.'

Option 1: 'Interest paid on loans' - This is a financing cost and is not related to employee compensation. It is classified under interest expense in financial accounting.

Option 3: 'Payments to suppliers for inventory' - This is a cost of goods sold or an operating expense, not related to employee compensation.

Option 4: 'Dividends paid to shareholders' - Dividends are a distribution of profits to shareholders and are not considered employee compensation. Therefore, the correct answer is 'Wages and salaries paid to employees,' as it directly relates to employee remuneration.