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

In financial accounting, who is primarily responsible for the repayment of a loan recorded on a company's balance sheet?

The borrower (debtor)

The lender (creditor)

The company's auditors

The company's shareholders

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Verified step by step guidance

Understand the concept of a loan recorded on a company's balance sheet: A loan is a liability, meaning it represents an obligation the company has to repay borrowed funds to the lender.

Identify the parties involved in the loan transaction: The borrower (debtor) is the entity that receives the loan and is responsible for repayment. The lender (creditor) is the entity that provides the loan and expects repayment.

Clarify the role of auditors: Auditors are responsible for reviewing the company's financial statements to ensure accuracy and compliance with accounting standards, but they are not responsible for repaying the loan.

Clarify the role of shareholders: Shareholders are the owners of the company and may benefit from its profits, but they are not directly responsible for repaying the company's liabilities unless explicitly stated in certain legal agreements.

Conclude that the borrower (debtor) is primarily responsible for the repayment of the loan recorded on the company's balance sheet, as it is the entity that entered into the loan agreement with the lender.