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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following questions is most likely to be asked by an investor when reviewing a company's financial statements?

How many employees does the company have?

What is the company's net income for the year?

How often are inventory counts performed?

What is the company's policy on employee benefits?

Previous problemNext problem

Verified step by step guidance

Understand the role of an investor: Investors are primarily interested in assessing the financial performance and profitability of a company to make informed decisions about investing in it.

Identify the relevance of net income: Net income is a key indicator of a company's profitability and is found on the income statement. It reflects the company's ability to generate profit after all expenses, taxes, and costs have been deducted.

Evaluate the other options: Questions about employee count, inventory counts, and employee benefits policies are operational or managerial concerns and are less relevant to an investor's primary focus on financial performance.

Recognize the importance of financial statements: Financial statements, such as the income statement, balance sheet, and cash flow statement, provide critical information about a company's financial health, which is what investors analyze.

Conclude that the most relevant question for an investor is 'What is the company's net income for the year?' because it directly relates to the company's profitability and financial success.