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

Which of the following is a proper form of capital contribution for a business association?

Future expected profits

Cash investment by owners

Personal expenses of owners

Unrecorded goodwill

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Understand the concept of capital contribution: Capital contribution refers to the resources (usually in the form of cash, property, or other assets) that owners or investors provide to a business in exchange for ownership interest or equity.

Evaluate the options provided: Analyze each option to determine whether it qualifies as a valid form of capital contribution based on accounting principles.

Option 1 - Future expected profits: Future expected profits are not a tangible or measurable contribution at the time of investment. They are speculative and cannot be recorded as a capital contribution.

Option 2 - Cash investment by owners: Cash is a tangible and measurable asset that can be contributed to the business. It is the most common and proper form of capital contribution.

Option 3 - Personal expenses of owners and Option 4 - Unrecorded goodwill: Personal expenses are not related to the business, and unrecorded goodwill is an intangible asset that cannot be directly contributed as capital. Neither qualifies as a proper form of capital contribution.