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 statements about startup capital is FALSE?

Startup capital may come from personal savings, investors, or loans.

Startup capital is recorded as equity or liability on the balance sheet.

Startup capital can only be obtained through loans from financial institutions.

Startup capital is the initial funding used to start a business.

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Verified step by step guidance

Understand the concept of startup capital: Startup capital refers to the initial funding required to start a business. It can come from various sources such as personal savings, investors, or loans.

Review how startup capital is recorded in financial accounting: Startup capital is typically recorded as equity if it comes from the owner's personal savings or investors, or as a liability if it is obtained through loans.

Analyze the statement 'Startup capital can only be obtained through loans from financial institutions': This statement is false because startup capital can come from multiple sources, not just loans.

Compare the false statement with the other options provided: Ensure that the other statements about startup capital are accurate and align with financial accounting principles.

Conclude that the false statement is the one claiming startup capital can only be obtained through loans, as it contradicts the broader definition and accounting treatment of startup capital.