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

Business Organization

Financial Accounting

1. Introduction to Accounting

Business Organization

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Multiple Choice

In the context of business organization, which term refers to the amount of money paid into a company by its owners?

Expenses

Revenue

Liabilities

Capital

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Verified step by step guidance

Understand the concept of 'Capital': In financial accounting, capital refers to the funds contributed by the owners of a business to start or expand the company. It represents the owner's equity in the business.

Differentiate 'Capital' from other terms: Expenses are costs incurred during operations, revenue is income earned from business activities, and liabilities are obligations owed to external parties. Capital is distinct as it represents the owner's investment.

Recognize the role of capital in the accounting equation: The accounting equation is Assets = Liabilities + Owner's Equity. Capital contributes to the owner's equity portion of this equation.

Identify how capital is recorded: In the financial statements, capital is recorded under the equity section of the balance sheet, reflecting the owner's stake in the business.

Apply this understanding to the question: The term that refers to the amount of money paid into a company by its owners is 'Capital,' as it represents their investment in the business.