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

Equity represents a(n) ______ interest of a firm.

liability

ownership

revenue

creditor

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Understand the concept of equity: Equity represents the ownership interest in a firm. It is the residual interest in the assets of the entity after deducting liabilities.

Review the options provided: liability, ownership, revenue, and creditor. Analyze each term to determine which aligns with the definition of equity.

Eliminate incorrect options: Liability refers to obligations owed by the firm, revenue refers to income earned, and creditor refers to entities to whom the firm owes money. None of these represent ownership interest.

Identify the correct option: Ownership is the correct term that matches the definition of equity, as it signifies the owner's stake in the firm.

Conclude that equity represents ownership interest in a firm, which is the residual claim on assets after liabilities are settled.