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 is an example of a valid business entity?

A neighborhood book club with no intention of earning profit

A family using a personal checking account for household expenses

A group of friends sharing expenses for a vacation

A local bakery operating as a sole proprietorship

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Verified step by step guidance

Understand the concept of a business entity: A business entity is an organization established to conduct business activities, typically with the intention of earning profit. It can take various forms, such as sole proprietorships, partnerships, corporations, or limited liability companies.

Analyze the examples provided in the question: Each example should be evaluated to determine whether it meets the criteria of a business entity, specifically whether it is organized for profit and operates as a distinct entity.

Evaluate the neighborhood book club: Since the book club has no intention of earning profit, it does not qualify as a business entity.

Evaluate the family using a personal checking account: This is a personal activity and not organized as a business entity, so it does not qualify.

Evaluate the local bakery operating as a sole proprietorship: A sole proprietorship is a valid business entity where an individual operates a business with the intention of earning profit. Therefore, this example qualifies as a valid business entity.