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

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

Financial Accounting

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

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Multiple Choice

Commingling of funds is the failure to use:

Separate accounts for business and personal transactions

Proper inventory valuation methods

Internal control procedures for cash disbursements

Accrual basis accounting

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Verified step by step guidance

Understand the concept of commingling of funds: Commingling refers to the improper mixing of business and personal funds, which can lead to difficulties in tracking financial transactions and compliance issues.

Identify the correct practice to avoid commingling: Businesses should maintain separate accounts for business and personal transactions to ensure clear financial records and accountability.

Evaluate the incorrect options: Proper inventory valuation methods, internal control procedures for cash disbursements, and accrual basis accounting are important practices but are unrelated to the concept of commingling of funds.

Relate the concept to financial accounting principles: Keeping separate accounts aligns with the principle of entity assumption, which states that a business's financial activities should be distinct from the owner's personal financial activities.

Apply this understanding in real-world scenarios: Ensure that all business transactions are recorded in the business account and personal transactions in the personal account to maintain accurate financial records and avoid legal or tax complications.