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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

An owner's financial interest in the business is called capital or:

Revenue

Owner's equity

Assets

Liabilities

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Verified step by step guidance

Understand the concept of owner's financial interest in the business. This is the portion of the business's assets that the owner has a claim to after all liabilities are settled.

Learn the term 'Owner's Equity,' which represents the owner's financial interest in the business. It is calculated as:

Assets - Liabilities

Differentiate between related terms: Revenue refers to the income generated from business operations, Assets are resources owned by the business, and Liabilities are obligations owed to external parties.

Recognize that Owner's Equity is a fundamental component of the accounting equation:

Assets = Liabilities + Owner's Equity

Apply this understanding to identify that the correct answer to the question is 'Owner's Equity,' as it directly represents the owner's financial interest in the business.