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 a disadvantage of a company going public?

Greater access to capital markets

Increased regulatory scrutiny and reporting requirements

Ability to use shares as acquisition currency

Enhanced public image and credibility

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Understand the concept of 'going public': When a company goes public, it means it offers its shares to the public through an initial public offering (IPO). This process has advantages and disadvantages.

Identify the advantages listed in the options: Greater access to capital markets, ability to use shares as acquisition currency, and enhanced public image and credibility are all benefits of going public.

Focus on the disadvantage: Increased regulatory scrutiny and reporting requirements. When a company goes public, it must comply with strict regulations, including filing financial statements, adhering to corporate governance standards, and undergoing audits.

Compare the options: Evaluate each option to determine which one represents a disadvantage. The other options highlight benefits, while 'Increased regulatory scrutiny and reporting requirements' is clearly a drawback.

Conclude the reasoning: The correct answer is 'Increased regulatory scrutiny and reporting requirements' because it represents a challenge or disadvantage that companies face when they go public.