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 one of the following is an example of a borrower in the financial markets?

An individual purchasing shares of stock

A corporation issuing bonds to raise capital

A bank acting as a custodian for client assets

A mutual fund investing in government securities

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Verified step by step guidance

Understand the concept of a borrower in financial markets: A borrower is an entity that raises funds by issuing financial instruments, such as bonds, to meet its financial needs. This entity is obligated to repay the borrowed funds with interest over time.

Analyze the options provided in the question: Each option represents a different participant or activity in the financial markets. Determine which one involves borrowing funds.

Option 1: 'An individual purchasing shares of stock' - This represents an investor buying equity in a company, not borrowing funds.

Option 2: 'A corporation issuing bonds to raise capital' - This represents a corporation borrowing funds from investors by issuing bonds, which is a clear example of borrowing in financial markets.

Option 3: 'A bank acting as a custodian for client assets' and Option 4: 'A mutual fund investing in government securities' - Both represent entities managing or investing funds, not borrowing. Therefore, the correct answer is Option 2.