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

Franchises will generally have higher:

royalty expenses compared to independent businesses

depreciation expense on intangible assets

inventory turnover ratios than manufacturing firms

interest income from investments

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Verified step by step guidance

Understand the concept of franchises: Franchises are businesses that operate under the branding and business model of a parent company, often paying fees or royalties for the right to use the brand and system.

Analyze royalty expenses: Franchises typically pay ongoing royalty fees to the parent company based on a percentage of sales or revenue. This is a key expense that independent businesses do not incur.

Consider depreciation expense on intangible assets: Franchises may have intangible assets such as franchise rights or trademarks, which are subject to amortization or depreciation over time. This is a unique accounting consideration for franchises.

Evaluate inventory turnover ratios: Manufacturing firms often have lower inventory turnover ratios due to the nature of production cycles, whereas franchises (especially in retail or food service) may have higher turnover due to faster sales cycles.

Assess interest income from investments: Franchises are less likely to generate significant interest income from investments compared to other types of businesses, as their focus is typically on operational activities rather than financial investments.