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 generally considered the best financial method to purchase furniture for a business, assuming sufficient cash flow is available?

Leasing with a long-term contract

Paying in full with cash

Taking out a payday loan

Financing with a high-interest credit card

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Verified step by step guidance

Understand the context of the question: The problem is asking for the best financial method to purchase furniture for a business, assuming sufficient cash flow is available. This means the business has enough money to pay upfront without needing external financing.

Evaluate the options provided: Leasing with a long-term contract, paying in full with cash, taking out a payday loan, and financing with a high-interest credit card. Consider the financial implications of each option.

Analyze the benefits and drawbacks of each option: Leasing with a long-term contract may result in higher overall costs due to interest and fees. Payday loans and high-interest credit cards are generally expensive financing options due to their high interest rates, which can lead to financial strain.

Consider the cash flow condition: Since the business has sufficient cash flow, paying in full with cash avoids interest and financing costs, making it the most cost-effective option.

Conclude that paying in full with cash is generally considered the best financial method in this scenario, as it minimizes costs and avoids debt obligations.