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 questions is of primary interest to a company’s creditors?

Will the company be able to repay its debts when they are due?

How much profit did the company earn this year?

How much did the company pay in dividends to shareholders?

What is the market value of the company’s stock?

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Verified step by step guidance

Step 1: Understand the perspective of creditors. Creditors are primarily concerned with the company's ability to repay its debts when they are due, as this directly impacts their financial interests.

Step 2: Analyze the options provided. The question asks which aspect is of primary interest to creditors. Evaluate each option in terms of its relevance to debt repayment.

Step 3: Option 1: 'Will the company be able to repay its debts when they are due?' This directly addresses the creditors' concern about the company's financial stability and ability to meet obligations.

Step 4: Option 2: 'How much profit did the company earn this year?' While profitability is important, it does not directly guarantee debt repayment, as profits could be reinvested or used elsewhere.

Step 5: Option 3: 'How much did the company pay in dividends to shareholders?' and Option 4: 'What is the market value of the company’s stock?' These are more relevant to shareholders and investors, not creditors. Therefore, the primary interest of creditors is best represented by Option 1.