For all questions assume that the indirect method is used.
There are four parts to the Statement of Cash Flows (or Cash Flow Statement):
1. Operating Activities
2. Investing Activities
3. Financing Activities
4. Supplemental Disclosures
For each of the following items, indicate which part will be affected.
1.
Depreciation Expense.
Operating
Right!
Depreciation is added back to net income in the operating activities section because the company's net income was reduced by the depreciation expense shown on the income statement; however, the company's cash was not reduced by depreciation expense. (Accordingly depreciation expense is referred to as a non-cash expense.)
Investing
Wrong.
Depreciation expense appears in the operating activities section.
Financing
Wrong.
Depreciation expense appears in the operating activities section.
Supplemental
Wrong.
Depreciation expense appears in the operating activities section.
2.
Proceeds from the sale of equipment used in the business.
Operating
Wrong.
The entire proceeds from the sale of a long-term asset are shown in the investing activities section of the statement of cash flows.
Investing
Right!
The entire proceeds from the sale of a long-term asset are shown in the investing activities section of the statement of cash flows.
Financing
Wrong.
Financing activities involve long-term liabilities and stockholders equity. The entire proceeds from the sale of a long-term asset are shown in the investing activities section of the statement of cash flows.
Supplemental
Wrong.
The entire proceeds from the sale of a long-term asset are shown in the investing activities section of the statement of cash flows.
3.
The Loss on the Sale of Equipment in Question #2.
Operating
Right!
The loss (computed as proceeds minus the book value) appeared on the income statement and reduced the company's net income. However, the company's cash did not decrease. (Actually the company's cash increased by the amount received for the asset.) You need to add back the loss that reduced net income on the income statement so that the amount reflects the cash from operating activities.
Investing
Wrong.
The loss must be added back to the net income amount appearing in the operating activities section of the statement of cash flows.
Financing
Wrong.
The loss must be added back to the net income amount appearing in the operating activities section of the statement of cash flows.
Supplemental
Wrong.
The loss must be added back to the net income amount appearing in the operating activities section of the statement of cash flows.
4.
Declaration and payment of dividends on company's stock.
Operating
Wrong.
Dividends declared/paid are shown in the financing activities section.
Investing
Wrong.
Dividends declared/paid are shown in the financing activities section.
Financing
Right!
Dividends cause stockholders' equity and cash to decrease. Changes in long-term liabilities and stockholders' equity are shown in the financing activities section of the statement of cash flows.
Supplemental
Wrong.
Dividends declared/paid are shown in the financing activities section.
5.
Gain on the Sale of Automobile formerly used in the business.
Operating
Right!
The gain (computed as proceeds minus the book value) appeared on the income statement and increased the company's net income. However, the entire proceeds from the sale of a company's assets are shown in the investing section. In order to avoid double-counting the gain, the gain must be subtracted from the net income amount appearing in the operating activities section of the statement of cash flows.
Investing
Wrong.
The gain is shown as a deduction in the operating activities section. The proceeds from the sale will appear in the investing section.
Financing
Wrong.
The gain is shown as a deduction in the operating activities section. The proceeds from the sale will appear in the investing section.
Supplemental
Wrong.
The gain is shown as a deduction in the operating activities section. The proceeds from the sale will appear in the investing section.
6.
The proceeds from the sale of the automobile in Item #5.
Operating
Wrong.
The entire proceeds will be shown in the investing activities section. (The gain will appear as a deduction in the operating activities section of the statement of cash flows.)
Investing
Right!
The entire proceeds will be shown in the investing activities section. (The gain will appear as a deduction in the operating activities section of the statement of cash flows.)
Financing
Wrong.
The entire proceeds will be shown in the investing activities section. (The gain will appear as a deduction in the operating activities section of the statement of cash flows.)
Supplemental
Wrong.
The entire proceeds will be shown in the investing activities section. (The gain will appear as a deduction in the operating activities section of the statement of cash flows.)
7.
An increase in the balance in a retailer's Merchandise Inventory.
Operating
Right!
Merchandise Inventory is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows. An increase in Merchandise Inventory will be shown as a deduction in the cash from the operating activities section.
Investing
Wrong.
Merchandise Inventory is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows.
Financing
Wrong.
Merchandise Inventory is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows.
Supplemental
Wrong.
Merchandise Inventory is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows.
8.
An increase in the balance in Accounts Payable.
Operating
Right!
Accounts Payable is a current liability account. Changes in current liabilities and changes in current assets (other than Cash) are shown in the operating activities section of the statement of cash flows. An increase in Accounts Payable will be shown as an increase in the cash from operating activities.
Investing
Wrong.
Accounts Payable is a current liability account. Changes in current liabilities and changes in current assets (other than Cash) are shown in the operating activities section of the statement of cash flows.
Financing
Wrong.
Accounts Payable is a current liability account. Changes in current liabilities and changes in current assets (other than Cash) are shown in the operating activities section of the statement of cash flows.
Supplemental
Wrong.
Accounts Payable is a current liability account. Changes in current liabilities and changes in current assets (other than Cash) are shown in the operating activities section of the statement of cash flows.
9.
Retirement of long-term Bonds Payable.
Operating
Wrong.
Bonds Payable is a long-term liability. Changes in long-term liabilities and changes in stockholders' equity are shown in the financing activities section.
Investing
Wrong.
Bonds Payable is a long-term liability. Changes in long-term liabilities and changes in stockholders' equity are shown in the financing activities section.
Financing
Right!
Bonds Payable is a long-term liability. Changes in long-term liabilities and changes in stockholders' equity are shown in the financing activities section. A decrease in Bonds Payable will be shown as a decrease in cash from financing activities.
Supplemental
Wrong.
Bonds Payable is a long-term liability. Changes in long-term liabilities and changes in stockholders' equity are shown in the financing activities section.
10.
Purchase of Treasury Stock (company's own stock).
Operating
Wrong.
The purchase of treasury stock results in a decrease in stockholders' equity. Changes in stockholders' equity and long-term liabilities are shown in the financing activities section of the statement of cash flows.
Investing
Wrong.
The purchase of treasury stock results in a decrease in stockholders' equity. Changes in stockholders' equity and long-term liabilities are shown in the financing activities section of the statement of cash flows.
Financing
Right!
The purchase of treasury stock results in a decrease in stockholders' equity. Changes in stockholders' equity and long-term liabilities are shown in the financing activities section of the statement of cash flows. The purchase of Treasury Stock will cause a decrease in cash from financing activities.
Supplemental
Wrong.
The purchase of treasury stock results in a decrease in stockholders' equity. Changes in stockholders' equity and long-term liabilities are shown in the financing activities section of the statement of cash flows.
11.
The purchase of a new delivery truck to be used in the business.
Operating
Wrong.
The new delivery truck to be used in the business is a long-term asset. Changes in long-term assets are shown in the investing activities section of the statement of cash flows.
Investing
Right!
The new delivery truck to be used in the business is a long-term asset. Changes in long-term assets are shown in the investing activities section of the statement of cash flows. The purchase of a delivery truck will cause a decrease in cash from investing activities.
Financing
Wrong.
The new delivery truck to be used in the business is a long-term asset. Changes in long-term assets are shown in the investing activities section of the statement of cash flows.
Supplemental
Wrong.
The new delivery truck to be used in the business is a long-term asset. Changes in long-term assets are shown in the investing activities section of the statement of cash flows.
12.
A decrease in the balance of Accounts Receivable.
Operating
Right!
Accounts Receivable is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows. A decrease in the Accounts Receivable will appear as an increase in cash from operating activities.
Investing
Wrong.
Accounts Receivable is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows.
Financing
Wrong.
Accounts Receivable is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows.
Supplemental
Wrong.
Accounts Receivable is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows.
13.
An increase in Bonds Payable (a long-term liability).
Operating
Wrong.
Bonds Payable is a long-term liability. Changes in long-term liabilities and changes in stockholders' equity are shown in the financing activities section.
Investing
Wrong.
Bonds Payable is a long-term liability. Changes in long-term liabilities and changes in stockholders' equity are shown in the financing activities section.
Financing
Right!
Bonds Payable is a long-term liability. Changes in long-term liabilities and changes in stockholders' equity are shown in the financing activities section. An increase in Bonds Payable will be reported as a increase in cash from financing activities.
Supplemental
Wrong.
Bonds Payable is a long-term liability. Changes in long-term liabilities and changes in stockholders' equity are shown in the financing activities section.
14.
A decrease in the current asset account Prepaid Insurance.
Operating
Right!
Prepaid Insurance is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows. A decrease in Prepaid Insurance will be reported as an increase in cash from operating activities.
Investing
Wrong.
Prepaid Insurance is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows.
Financing
Wrong.
Prepaid Insurance is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows.
Supplemental
Wrong.
Prepaid Insurance is a current asset. Changes in current assets (other than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows.
15.
A decrease in the current liability Income Taxes Payable.
Operating
Right!
Income Taxes Payable is a current liability account. Changes in current liabilities and changes in current assets (other than Cash) are shown in the operating activities section of the statement of cash flows. A decrease in a current liability will be reported as a decrease in cash from operating activities.
Investing
Wrong.
Income Taxes Payable is a current liability account. Changes in current liabilities and changes in current assets (other than Cash) are shown in the operating activities section of the statement of cash flows.
Financing
Wrong.
Income Taxes Payable is a current liability account. Changes in current liabilities and changes in current assets (other than Cash) are shown in the operating activities section of the statement of cash flows.
Supplemental
Wrong.
Income Taxes Payable is a current liability account. Changes in current liabilities and changes in current assets (other than Cash) are shown in the operating activities section of the statement of cash flows.
16.
The proceeds from issuing additional Common Stock.
Operating
Wrong.
The issuance of common stock results in an increase in stockholders' equity. Changes in stockholders' equity and long-term liabilities are shown in the financing activities section of the statement of cash flows.
Investing
Wrong.
The issuance of common stock results in an increase in stockholders' equity. Changes in stockholders' equity and long-term liabilities are shown in the financing activities section of the statement of cash flows.
Financing
Right!
The issuance of common stock results in an increase in stockholders' equity. Changes in stockholders' equity and long-term liabilities are shown in the financing activities section of the statement of cash flows. The proceeds from the issuance of common stock will be reported as an increase in cash from financing activities.
Supplemental
Wrong.
The issuance of common stock results in an increase in stockholders' equity. Changes in stockholders' equity and long-term liabilities are shown in the financing activities section of the statement of cash flows.
17.
The amortization of the cost of an intangible asset.
Operating
Right!
Amortization of the cost of an intangible asset is added back to net income in the operating activities section because the company's net income was reduced by the amortization expense shown on the income statement; however, the company's cash was not reduced by amortization expense. (Accordingly amortization expense is referred to as a non-cash expense.)
Investing
Wrong.
Amortization expense appears in the operating activities section.
Financing
Wrong.
Amortization expense appears in the operating activities section.
Supplemental
Wrong.
Amortization expense appears in the operating activities section.
18.
The exchange/conversion of long-term bonds into common stock.
Operating
Wrong.
The exchange or conversion of bonds into common (or preferred) stock is a non-cash exchange and appears as supplemental information.
Investing
Wrong.
The exchange or conversion of bonds into common (or preferred) stock is a non-cash exchange and appears as supplemental information.
Financing
Wrong.
The exchange or conversion of bonds into common (or preferred) stock is a non-cash exchange and appears as supplemental information.
Supplemental
Right!
The exchange or conversion of bonds into common (or preferred) stock is a non-cash exchange and appears as supplemental information.
For items 19 - 30 indicate whether they will have a positive or negative EFFECT ON CASH.
A positive effect could also be thought of as a source of cash, an increase in cash, or a positive amount on the cash flow statement.
A negative effect could also be thought of as a use of cash, a decrease in cash, or a negative amount on the cash flow statement.
19.
An increase in the balance of Prepaid Insurance.
Positive
Wrong.
Prepaid Insurance is a current asset. An increase in any asset account balance (other than Cash) is assumed to have used Cash or decreased Cash. Both of these are considered to have a negative effect on Cash.
Negative
Right!
Prepaid Insurance is a current asset. An increase in any asset account balance (other than Cash) is assumed to have used Cash or decreased Cash. Both of these are considered to have a negative effect on Cash.
[Because Prepaid Insurance is a current asset, the decrease in Cash appears in the operating activities section of the statement of cash flows.]
20.
A decrease in Supplies on hand.
Positive
Right!
Supplies (on Hand) is a current asset account. A decrease in any asset account balance (other than Cash) is assumed to be a source of Cash, provided Cash, increased Cash, or have used less Cash than the amount of Supplies Expense shown on the income statement. All of these are considered to have a positive effect on Cash.
[Because Supplies is a current asset, the increase in Cash will appear in the operating activities section of the statement of cash flows.]
Negative
Wrong.
Supplies (on Hand) is a current asset account. A decrease in any asset account balance (other than Cash) is assumed to be positive for the company's Cash account. Also see the Positive answer.
21.
The proceeds from the sale of equipment formerly used in the business.
Positive
Right!
Equipment is a long-term asset. A decrease in any asset account (other than Cash) is assumed to be a source of Cash, provided Cash, or increased Cash. All of these are positive effects on Cash.
[The entire proceeds from the sale of the equipment will be shown in the investing activities section of the statement of cash flows.]
Negative
Wrong.
Equipment is a long-term asset. A decrease in any asset account (other than Cash) is assumed to be a source of Cash, provided Cash, or increased Cash. All of these are positive effects on Cash.
22.
The Loss on the Sale of Equipment in the previous question.
Positive
Right!
The Loss on the Sale of Equipment caused a decrease to the net income amount on the income statement. However, there was no decrease in Cash for this loss. Therefore, we need to add back (show an increase) to the net income amount appearing in the operating activities section.
Negative
Wrong.
The Loss on the Sale of Equipment had already reduced the net income amount on the income statement. However, there was no decrease in Cash for this income statement item. Therefore you must add this amount back to the net income amount appearing in the operating activities section—a positive effect.
23.
An increase in the current liability Income Taxes Payable.
Positive
Right!
Income Taxes Payable is a current liability. An increase in any liability account (or in stockholders' equity) is assumed to increase Cash or at least be favorable from a Cash point of view. If Income Taxes Payable increased, the company did not pay the entire amount of Income Tax Expense shown on the income statement. Since the starting point in the operating activities section is net income, you add back the increase in Income Taxes Payable.
To assist in understanding the increase or decrease, you could substitute 'favorable effect on Cash' for increases in liabilities. (Substitute 'negative effect on Cash' for decreases in liabilities.) If a payable increases, it means the company did NOT pay all of the bills and that has a favorable effect on Cash.
Another way to remember the effect is that the effect on Cash will be the SAME direction as a change in the liability account balance. An increase in any liability will be a positive amount/effect on the statement of cash flows (SCF). A decrease in any liability will be shown as a negative amount/effect on the SCF.
[Because Income Taxes Payable is a current liability, the change will be shown in the operating activities section of the SCF.]
Negative
Wrong.
Income Taxes Payable is a current liability. An increase in any liability account (or in stockholders' equity) is assumed to increase Cash or at least be favorable from Cash point of view. If Income Taxes Payable increased, the company did not pay the entire amount of Income Tax Expense shown on the income statement. Since the starting point in the operating activities section is net income, you add back the increase in Income Taxes Payable.
To assist in understanding the increase or decrease, you could substitute 'favorable effect on Cash' for increases in liabilities. (Substitute 'negative effect on Cash' for decreases in liabilities.) If a payable increases, it means the company did NOT pay all of the bills and that has a favorable effect on Cash.
Another way to remember the effect is: the effect on Cash will be the SAME direction as a change in the liability account balance. An increase in any liability will be a positive amount on the statement of cash flows (SCF). A decrease in any liability will be shown as a negative amount on the SCF.
24.
A decrease in Accounts Payable.
Positive
Wrong.
Accounts Payable is a current liability account. It is assumed that a company had to use or decrease Cash in order to decrease any liability. You could also think of negative amounts on the statement of cash flows as being unfavorable from a Cash point of view. Decreasing a liability is unfavorable or negative as far as Cash is concerned.
Another way to remember the effect is: the change in Cash will be in the SAME direction as a change in the liability account balance. An increase in any liability will be a positive amount on the statement of cash flows (SCF). A decrease in any liability will be shown as a negative amount on the SCF.
Negative
Right!
Accounts Payable is a current liability account. It is assumed that a company had to use or decrease Cash in order to decrease any liability. You could also think of negative amounts on the statement of cash flows as being unfavorable from a Cash point of view. Decreasing a liability is unfavorable or negative as far as Cash is concerned.
TIP: The change in Cash will be the SAME direction as a change in the LIABILITY account balance. An increase in any liability will be a positive amount on the statement of cash flows (SCF). A decrease in any liability will be shown as a negative amount on the SCF.
[Because Accounts Payable is a current liability, the change will be shown in the operating activities section of the SCF.]
25.
An increase in Accounts Receivable.
Positive
Wrong.
Accounts Receivable is a current asset. An increase in any asset (other than Cash) is assumed to have a negative effect on Cash. The change in Cash is the OPPOSITE sign of the change in the other ASSET'S balance.
Negative
Right!
Accounts Receivable is a current asset. An increase in any asset (other than Cash) is assumed to have a negative effect on Cash. The change in Cash is the OPPOSITE sign of the change in the other ASSET'S balance.
[Because Accounts Receivable is a current asset, the change appears in the operating activities section.]
26.
An increase in the current liability Warranty Liability.
Positive
Right!
The change in Cash will be the SAME direction as the change in the balance of a LIABILITY account. In this case the Warranty Liability balance increased, so the effect on Cash shown on the statement of cash flows is also a positive amount.
[Because Warranty Liability is a current liability, the change will appear in the operating activities section.]
Negative
Wrong.
If a liability account increases, Cash is assumed to also increase. Recall that the effect on Cash is the same sign/direction as the change in the liability.
27.
Dividends declared and paid.
Positive
Wrong.
Dividends decrease the company's amount of Cash.
Negative
Right!
Dividends do decrease the company's Cash, which is a negative effect on Cash.
[Because dividends affect a stockholders' equity account, dividends will be shown in the financing activities section as a negative amount.]
28.
Proceeds from the issuance of Preferred Stock.
Positive
Right!
The proceeds received by the company for the new stock being issued will increase the company's Cash, a positive effect on Cash.
[Because the transaction involves stockholders' equity, the amount will appear in the financing activities section of the statement of cash flows.]
Negative
Wrong.
The company will be increasing its Cash by issuing new shares of stock. An increase to Cash is a positive effect.
29.
The Gain on the Sale of Equipment formerly used in the business.
Positive
Wrong.
The Gain on Sale of Equipment was an increase to the net income on the income statement. On the statement of cash flows we need to subtract the gain from the net income so that only the cash from operating activities appears in the operating activities section. This subtraction or decrease will also prevent the double counting of the gain, since the entire proceeds from the sale are reported in the investing activities section.
Negative
Right!
The Gain on Sale of Equipment was an increase to the net income on the income statement. On the statement of cash flows we need to subtract the gain from the net income so that only the cash from operating activities appears in the operating activities section. This subtraction or decrease will also prevent the double counting of the gain, since the entire proceeds from the sale are reported in the investing activities section.
30.
An increase in the long-term asset Investment in Another Company.
Positive
Wrong.
An increase in any asset (other than Cash) is assumed to have a negative effect on Cash. An increase in any asset (other than Cash) is assumed to be a use of Cash or a decrease in Cash.
Negative
Right!
An increase in any asset (other than Cash) is assumed to have a negative effect on Cash. It is assumed that Cash was used or decreased.
31.
For a recent year a corporation's financial statements reported the following:
Based on the above information, what amount will the corporation report as Net Cash Provided by Operating Activities on the cash flow statement?
$65,000
Right!
The solution is shown below.
$125,000
Wrong.
Try another answer.
$155,000
Wrong.
Try another answer.
32.
A corporation reported the following information for the past year:
Assuming these are the only facts, what amount will the corporation report as the Net Cash Provided by Operating Activities on the cash flow statement?
$225,000
Wrong.
Try another answer.
$235,000
Right!
The solution is shown below.
$253,000
Wrong.
Try another answer.
33.
Using the information in Question #32, what amount will be reported under Cash From Investing Activities?
$3,000
Wrong.
Try another answer.
$8,000
Right!
The entire proceeds from the sale of a long-term asset is reported under Cash from Investing Activities.
$13,000
Wrong.
Try another answer.
Page 2
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AccountingCoach has been a God-send to me for years! When I got thrown into a bookkeeping position many years ago I floundered terribly until I stumbled upon AccountingCoach.com. I can't say enough about how thorough and detailed the website is with lessons, quizzes, tests, tons of downloads, guides, and handy cheat sheets. After only a few weeks on the website I had gained the skills and confidence I needed to become competent at and comfortable with my job. When I realized I loved bookkeeping I decided to enhance my knowledge even further with a college accounting course, and I must say in all honesty, it paled in comparison to what I was learning on AccountingCoach.com. Although I've been in bookkeeping many years now, there is always something for me to learn on AccountingCoach.com and I devote several hours every week to getting on the site to refresh my skills or to learn something new. This is a rare company in that it is devoted not only to teaching accounting and bookkeeping in easy-to-understand terms, but also to exceptional customer service! Thank you AccountingCoach for your genuine approach to all you do!
-Terri L.
"Accounting is not my strong suit. The AccountingCoach is the best source I know of that can walk me through the basics in a way that gives me confidence. It's always available 24/7. Can't say enough good things about it. Highly recommend it."
-Tony C.
I was looking out for an online accounting course after a gap of 25 years. Luckily, I came across AccountingCoach. The very first visit to this site made me feel very comfortable. I felt as though it was made just for me. Very soon I enrolled myself as a PRO member. Now that I am able to access the entire site like the seminars, exams, crosswords and many many more interesting ways to learn accounting, my knowledge in accounting has deepened. I can confidently say to people who are new to this field, or who are trying for a refresher course like me, this is THE WEBSITE for you. It's a well-structured program, the most difficult accounting concepts have been explained in a very crystal clear fashion with beautiful real-life examples. Thanks to Mr Harold Averkamp and his dedicated team for sharing their deep insight.
-Sunita P.
The PRO membership is great ROI. For those who are looking to learn accounting, this is one of greatest accounting courses you'll ever find online.
-Karam T.
AccountingCoach helps me tremendously. I always find-up-to date the financial and accounting information needed. As I move into the next phase of my work life and career, AccountingCoach PRO will be an essential tool as I move from employee to business owner. Thank you for this very valuable tool which continues to evolve and grow.
-Diane J.
Thank you for being my reference book as I complete my accounting degree. I had no experience in accounting or bookkeeping before completing this degree and understandably I was in over my head! All the way over in New Zealand I came across your website, subscribed, hoping I may learn even a couple of things and have ended up using your website as my main reference tool. The quizzes, question and answer pages, the entire website is so user friendly and I know it will see me through to the completion of my degree. I can't thank you enough, please keep up the fantastic work!!!
-K.H.
I own a bookkeeping and tax business and I use AccountingCoach to train my bookkeepers. The value far exceeds the cost!
-Wendi
I currently teach Bookkeeping at one of the colleges in New York City. Being a member of AccountingCoach PRO has helped me tremendously. There is always something new to learn and teach. The price is very affordable. I have always encouraged my students to join the site. I'm glad to say that some have and they have really benefited from what AccountingCoach PRO has to offer.
-Marcia S.
I have been a member of AccountingCoach for many years now. I value the content and the easy-to-grasp manner in which the material is always explained. Many times I read the material here before studying it in my accounting book. I love AccountingCoach! They are very honorable as well. My membership continues to be valid after all these years. If I email them with questions about my membership or password or whatever else, they are always prompt to assist. I wish I had been a student of the founder of the site. He must have been a really wonderful professor!!! Thanks for putting all the work to create and maintain the site. You guys are the best!!
-Licia B.
Thank you AccountingCoach, you have helped me over the last 8 years of study and guided me to my dream job of becoming an accountant. I've answered and explained all the hard questions that I needed to get me where I am today and I certainly couldn't have done it without you! I will continue to use AccountingCoach PRO for the rest of my career. You are the best.
-Gillian L.
AccountingCoach PRO membership has assisted me in keeping my accounting and bookkeeping skills sharp over the years. My bookkeeping business has benefited greatly. The membership pricing is very reasonable and the information is easy to understand and apply. It has helped me explain difficult accounting concepts to many of my clients.
-Manch K.
AccountingCoach helped me during the times I had trouble remembering accounting concepts. It is a very useful website encompassing a broad area of accounting and finance. Definitely the best go-to place for accountants like me. Thank you so much!
-Cynthia A.
As a European I studied the accounting system used in my particular country. I always wondered how accounting was done in the U.S. AccountingCoach has taught me everything I wanted to know. I've learned a lot about the terminology and the differences between accounting methods from the other side of the pond.
-Pedro R.
I strongly believe that AccountingCoach is the best education program from a practical accounting point of view. Every tool like the accounting dictionary, crossword puzzles, word scrambles (I love it!) and so on explains difficult technical words with the most proper and simplest words Visual learning programs and Q&A archives are especially effective for non-native English speakers to understand current and practical usage methods of accounting terms.
-Ishino K.
Right after graduating from university and getting my bachelor's degree in accountancy, I didn't manage to land a job in the accounting field, instead I got a job in banking. While the pay was a little bit higher than what many other fresh graduates would get in the accounting field, I didn't particularly enjoy what I was doing. So I decided to give what I was most interested in to begin with another shot. Unfortunately, I wasn't feeling very confident in my ability and knowledge in accounting because there was a particularly long lapse of time where I wasn't exposed to accounting. Thankfully I discovered this website, which explains the basics of what you need to know about accounting in a very concise and rather layman way. I also really appreciate that the administrator of the website tries to improve and add more content to the site instead of stagnating after getting my money. I can definitely recommend this site if you need to refresh yourself with accounting, or even just to help you with your study if you're still in the process of getting your degree.
-Leonard L.
I am so impressed by AccountingCoach. I happened to stumble upon it when I was checking for an explanation on impairment. Ever since then my life has become uncomplicated and all these accounting books thrown out the window. It truly is the best! I could not believe it? I run my own accounting, bookkeeping practice and I am still today amazed about the way they have simplified things! I love it! Job well done to the team at AccountingCoach! I am your biggest fan! Thanks so much.
-Eleanor M.
I am a Granny of 67 years old, a South African National, studying for an undergraduate degree in Accounting. Coming across AccountingCoach was the best gift I ever received throughout my education pursuits. AccountingCoach is pleasantly user-friendly and a great study tool for senior citizens and those who study part time because of their busy work schedules. Even South African University students who are presently facing funding challenges in South Africa can use AccountingCoach as a study tool. Thank you.
-Jane N.
I am an experienced businessman now semi-retired and I guest lecture to senior managers in major UK companies and at academic institutions including some internationally famous business schools on topics such as Business Performance Measurement; Business Decision-Taking; and Assessing and Managing Risk. Although I understand business finance well, I never trained as an accountant. But to maintain high credibility when delivering my courses I need to be aware of and keep up to date with certain key international accounting standards and current accounting definitions and practices. I have found AccountingCoach to be an excellent way to do this and fantastic value for money.
-Ray O.
I am a small business accountant and tax preparer. A lot of my clients are do-it-yourself bookkeepers for their small business. Most of them, if not all, use bookkeeping software to keep track of their business. Although software programs are great at what they do and are "easy" for the user, the double entry accounting method is still occurring in the background. Accounting concepts and terms are not "easily" explained to a small business owner who doesn't understand why reports look the way they do. To help them, I always direct them to AccountingCoach to learn the concepts and terms. The tutorials, glossary, and web topics are presented in the best way that anyone can understand accounting. It's the best source on the web!
-Kathleen F.
Just want to let you know that I have learned so much from AccountingCoach PRO. I have had so many issues resolved simply by referring to AccountingCoach PRO when it comes to doing my everyday bookkeeping work. I am so glad that I discovered you and look forward to referring to this website a lot in the future...keep up the great work.
-Peggy M.
I teach Accounting and this is the first website I give my students. I too, purchased the lifetime membership because it is a valuable resource for them and for anyone desiring to learn and understand Accounting. I even do the crossword puzzles, word scrambles, etc. to keep my skills sharp! Plus, it's fun! It's a challenge to keep my lectures interesting, and AccountingCoach helps tremendously. Thanks!
-Crystal C.
I love, love, love your website, it has helped me to succeed in all the bookkeeping I have done off and on throughout the years. Whenever I had doubts I could easily access the website and find my answers quick and I love the videos. Very educational, accurate and reliable. The lifetime unlimited access was one of the best investments I have ever made a few years ago! Makes learning fun and I would suggest this to others in a heartbeat, business owners, employees won't be disappointed. Even those who do occasional bookkeeping will definitely be satisfied with any membership purchase. Thank you AccountingCoach for all that you have helped me with!!! Amazing site!!
-Brenda L.
I am not an accountant, nor a bookkeeper, but I need to be aware of what's happening financially. Being able to consult AccountingCoach on a specific topic relating to our books has been a tremendous help to me. I very much appreciate your service!
-Brian P.
I don't have enough words to express how great the AccountingCoach is. I have been using it since the first day I became a member and it's incredibly good.
-Manny S.
AccountingCoach assisted me with training my team on the profit and loss statements. It helped me put the 'why' behind the terminology used. I would highly recommend AccountingCoach as a good resource for all levels of users!
-Carolyn C.
AccountingCoach has helped me a lot with my work as a manager. It has given me confidence in reading and looking at spreadsheets and budgets as well as giving me the tools to interpret our financial status and forecast future expectations at my work. A great idea to have it readily available for all of us managers and professionals that need to brush up on their accounting knowledge or learn to enhance their professional standings and job status. Thank you for the videos and cheat sheets, as I appreciate a great effort on your part to all of us that need to learn and revise their accounting and finance information and knowledge.
-Samih B.
I bought a small Accounting, Bookkeeping & Payroll business and had very little knowledge of accounting principles and felt I was way over my head. I was looking online for free training or help with just the basics. After a few website that did not help, I found AccountingCoach and signed up and it has helped me a great deal! I am not sure if my business would be as successful if I did not pick up the lessons so easily. AccountingCoach really makes learning easy and interesting, which is hard to do when it comes to accounting. I have recommended it to friends & family and I will continue to do so. Thank you AccountingCoach!!!
-Jennifer L.
As a high school accounting teacher I have used the resources on AccountingCoach PRO to enhance my understanding of accounting concepts and make my explanation of concepts clearer for my students. I recommend AccountingCoach PRO to students pursuing higher level accounting after high school and to anyone teaching accounting classes---the money spent on this resource will be one of the best investments in professional development you'll make in your career.
-Sharon M.
The PRO membership allows me to provide great explanations to my coworkers who are not versed in accounting without me spending a lot of time finding examples they may understand. I use my membership to review topics that I don't use very often and it has been one of the best investments I've made for my work and it costs less than my Accounting textbook!
-John B.
AccountingCoach has helped tremendously while I was studying for accounting and I strongly believe that my grade would not have been in the 90's had it not been for the AccountingCoach. I will always keep the AccountingCoach in my favourites list even though I have completed my courses as I will no doubt make reference to it when I second-guess myself. It has helped with all aspects of accounting from the very beginning to the very end. Whomever decided to create AccountingCoach was a genius because it is designed in a way that anyone from an amateur to a PRO can follow along. I recommend it to everyone. It has become my new limb. Cannot boast enough about it. Well worth it.
-Tammy
Becoming a member of AccountingCoach was hands down a great decision for me. I have been in bookkeeping for over 16 years and all the training I had was from the CPA that I worked for. While I felt I had a good foundation and years of experience, once I took the leap and branched out with my own bookkeeping practice I felt the need to brush up on my skills. AccountingCoach actually not only helped me brush up on my knowledge, but has helped me pinpoint my strengths and weaknesses which allowed me to focus on those areas that I was lacking knowledge. It was also a great boost to see how much knowledge I already had. I think it was a great investment and I love knowing that when I second-guess myself I can easily log in and review the information needed. Worth every penny!
-Judith G.
Thank you AccountingCoach! As an auditor, I frequently encounter government and private financial transactions that I vaguely remember from my college years. The information and ease of finding the right accounting procedures to those instances has been an enormous help to me in my job. This has definitely been a good decision to be a member.
-Enrique E.
I came across AccountingCoach some years ago and since then it has been my go-to solution for all and any problems or issues that arise in my day-to-day work. Whenever I come across a situation I have not faced before I sign in, read up on the related data, of which there is plenty, and solve another problem. I think of AccountingCoach as my personal library where I can look up information on any aspect of my business. My clients are always impressed with the results I provide. Thank you AccountingCoach.
-Joseph C.
I started using AccountingCoach when I found myself unemployed and looking to brush up on my cost accounting skills. It was a wonderful tool and I found it easy to use and contained all the information I would need to get familiar with the topic, all while not having to go back to my college books or my CPA review materials. It is affordably priced and well worth investing in. I am now employed and the materials I studied helped me to prepare for questions I received in the interview process regarding topics I needed to brush up on.
-Karen B.
In my roles as a business owner, member of senior management teams and as a business consultant, I frequently deal with accounting-related issues. While I have a solid grasp of a wide range of accounting practices and methods, I still find that there are times when I want to refresh or investigate aspects of accounting that I either seldom visit or have not had the opportunity to work with. When those circumstances arise, I turn to AccountingCoach which I find covers not only a wide range of topics but usually in enough depth and detail that you can use it almost like a condensed primer on any given topic. The information and examples are complete enough that I find I can apply what is shown to the task at hand and have the result be equal to what I would get from an accounting professional. It is not an exaggeration to state that it has saved both time and cost on numerous occasions. Highly recommended!
-James F.
Living in a small tourist rural town, there are limited choices in the job market. I knew if I bumped up my skills, I would become eligible for a bookkeeping position locally. AccountingCoach has helped me do that. Such a small investment for a HUGE return. Thank you so much for making this available!
-Pam P.
I would like to say thank you very much for your support. I am a student of Accounting at George Mason University in Virginia. I found your website some time ago, and I have been a PRO member ever since. From the moment I found AccountingCoach, I recognize the value, quality and effort of your work. Currently, I am taking Financial Accounting. I confess I was scared because it has been awhile since I took accounting classes. Thankfully, AccountingCoach helps me to not just refresh my mind on basic accounting terminology, but also helps me to understand new terminology in plain English.
-Desire S.
I found AccountingCoach online about 2 years ago. It has helped me tremendously to brush up on knowledge and information about accounting that I don't have time to go to school for. I have been an accountant for many years and don't plan on going back to college at this point; I have a Bachelor’s degree already. I use AccountingCoach to study for a job in accounting if I am not familiar with the work or to understand something like cash flow statements when prepping for a job interview. Recently, I used the online exams extensively to study for a city accounting job; with great success. Thank you Harold!
-Mary B.
I have been using AccountingCoach in my bookkeeping business for a few years now and love it! There are times when I need an answer to some accounting situation that baffles me and always have been able to find the answers I need on your website. I particularly like the clear and concise way the material is presented so I can quickly get results.
-Cheryl N..
I enrolled in an accounting course online. I was sent textbooks and a workbook in the mail and that was it. I was on my own to figure out the rest. It was difficult trying to match the course and workbook together to do the lessons and exercises and the explanations left too many gaps and questions. I knew I needed extra support. I stumbled upon AccountingCoach in an internet search and from the little I was able to read, I gained a far better understanding than the college-level textbook I had been studying for months. I signed up for PRO and it got even better. I'm able to do more exercises and gain extra studying tools and more detailed explanations to ensure my understanding of the accounting process. Truthfully, I've learned more through the AccountingCoach Pro than the college textbook and it cost sooo much less! It has been a life saver. I don't think I could have continued without it. Thank you for creating such an amazing experience and giving me the confidence I needed to keep working towards my goal.
-Crystal C.
AccountingCoach is a simply fantastic self-learning source. The way it explains various accounting concepts in such a simple and self explanatory manner is really commendable. Being an engineering student, with no past accounting background, AccountingCoach has been a great saviour in my MBA accounting module. The Balance Sheets, Statement of Cash Flows, and Income Statement all have been explained very beautifully. Thank you AccountingCoach. Keep up the good work.
-Amber A.
