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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Which of the following is considered a good credit practice?

Extending unlimited credit to all customers without evaluation

Granting credit based solely on customer requests

Regularly reviewing customers' creditworthiness before extending credit

Ignoring overdue accounts to maintain customer relationships

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Verified step by step guidance

Understand the concept of credit practices: Credit practices involve evaluating the financial reliability of customers before extending credit to ensure the business minimizes risks associated with non-payment.

Identify the importance of reviewing creditworthiness: Regularly reviewing customers' creditworthiness helps businesses assess the likelihood of repayment and avoid extending credit to high-risk customers.

Evaluate the options provided: Analyze each option to determine whether it aligns with good credit practices. For example, extending unlimited credit without evaluation or granting credit based solely on customer requests are risky practices that could lead to financial losses.

Recognize the importance of overdue account management: Ignoring overdue accounts to maintain customer relationships can harm the business's cash flow and financial stability. Addressing overdue accounts is essential for effective credit management.

Conclude that regularly reviewing customers' creditworthiness is the best practice: This approach ensures the business makes informed decisions about extending credit, reducing financial risks and maintaining healthy customer relationships.