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 type of accounting plan can a sole proprietor use only if the employees of the business are included?

Cash basis accounting

Managerial accounting

Qualified retirement plan

Accrual basis accounting

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Verified step by step guidance

Understand the context of the question: A sole proprietor is a business owner who operates their business individually. The question is asking about a specific type of accounting plan that includes employees.

Recognize that the term 'Qualified retirement plan' refers to a retirement savings plan that meets specific requirements set by the IRS and is designed to benefit employees. Sole proprietors can use this plan only if employees are included.

Differentiate between the other options provided: 'Cash basis accounting' and 'Accrual basis accounting' are methods of recording financial transactions, not plans specifically tied to employee benefits. 'Managerial accounting' focuses on internal decision-making and is unrelated to retirement plans.

Conclude that the correct answer is 'Qualified retirement plan,' as it is the only option that directly involves employees and is specific to retirement benefits.

Remember that understanding the purpose and requirements of financial plans, such as qualified retirement plans, is essential for making informed decisions in accounting and business management.