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

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 two of the following should be included when calculating start-up costs for a business?

Dividends paid and retained earnings

Depreciation expense and accounts receivable

Owner's personal living expenses and future sales revenue

Legal fees and equipment purchases

Previous problemNext problem

Verified step by step guidance

Understand the concept of start-up costs: Start-up costs are the initial expenses incurred to establish a business. These costs are typically one-time expenses necessary to get the business operational.

Identify the relevant items: Start-up costs generally include expenses such as legal fees, equipment purchases, permits, licenses, and other costs directly related to starting the business.

Eliminate irrelevant items: Dividends paid and retained earnings are related to the distribution of profits and equity, not start-up costs. Depreciation expense and accounts receivable are ongoing operational items, not initial costs. Owner's personal living expenses and future sales revenue are unrelated to business start-up costs.

Focus on the correct items: Legal fees are necessary for setting up the business structure, drafting contracts, and ensuring compliance with regulations. Equipment purchases are essential for acquiring the tools and machinery needed to operate the business.

Conclude that legal fees and equipment purchases are the correct components to include when calculating start-up costs, as they are directly tied to the establishment of the business.