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 investment accounts allows for tax-free withdrawals at retirement?

Roth IRA

Taxable Brokerage Account

Traditional IRA

401(k)

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Verified step by step guidance

Understand the key characteristics of each investment account listed in the problem. Focus on their tax implications, especially regarding withdrawals at retirement.

Learn that a Roth IRA allows for tax-free withdrawals at retirement, provided certain conditions are met, such as the account being held for at least five years and the account holder being at least 59½ years old.

Compare the Roth IRA to the other options: Taxable Brokerage Account, Traditional IRA, and 401(k). Note that withdrawals from a Taxable Brokerage Account are subject to capital gains tax, while Traditional IRA and 401(k) withdrawals are taxed as ordinary income.

Recognize that the Roth IRA is unique among the options because contributions are made with after-tax dollars, and qualified withdrawals are tax-free.

Conclude that the Roth IRA is the correct answer based on its tax-free withdrawal feature at retirement, which distinguishes it from the other accounts listed.