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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Which of the following is one of the main things to consider when evaluating a business opportunity?

The proximity of the business to tourist attractions

The number of employees' favorite sports teams

The color of the company's logo

The potential for profitability and return on investment

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Verified step by step guidance

Understand the concept of evaluating a business opportunity: The primary goal is to assess whether the business can generate sufficient profits and provide a good return on investment (ROI). This involves analyzing financial and operational aspects of the business.

Step 1: Define profitability. Profitability refers to the ability of a business to generate earnings after covering all expenses. It is a key indicator of the financial health and success of a business.

Step 2: Define return on investment (ROI). ROI measures the efficiency of an investment or compares the efficiency of several investments. It is calculated using the formula: ROI = (Net Profit / Investment Cost) × 100.

Step 3: Evaluate the potential for profitability. This involves analyzing factors such as market demand, competition, pricing strategies, and cost structures to determine if the business can generate sustainable profits.

Step 4: Assess the potential ROI. This includes estimating the initial investment required, forecasting future cash flows, and calculating the expected return to ensure the investment is worthwhile.