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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

If a firm sells shares of stock, it is financing with which of the following?

Accounts payable

Equity

Debt

Retained earnings

Previous problemNext problem

Verified step by step guidance

Understand the concept of equity financing: Equity financing involves raising capital by selling shares of stock to investors. This represents ownership in the company and is distinct from debt financing, which involves borrowing money.

Review the options provided: Accounts payable, debt, retained earnings, and equity. Each term represents a different financial concept.

Eliminate incorrect options: Accounts payable refers to short-term liabilities owed to suppliers, debt refers to borrowed funds, and retained earnings are profits reinvested in the business rather than distributed as dividends. None of these involve selling shares of stock.

Identify the correct option: Selling shares of stock is a form of equity financing because it involves issuing ownership stakes in the company to investors.

Conclude that the correct answer is equity, as it directly relates to the sale of shares to raise capital for the firm.