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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

According to best practices in financial accounting, how often should you prepare a budget to ensure it provides useful information?

Whenever there is a major expense

Only when profits decline

Only once at the start of a business

Every single period (e.g., month or year)

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Verified step by step guidance

Understand the purpose of a budget: A budget is a financial plan that helps businesses allocate resources, forecast revenues and expenses, and monitor financial performance over time.

Recognize the importance of periodic budgeting: Preparing a budget every single period (e.g., month or year) ensures that the business can adapt to changing circumstances, track progress, and make informed decisions.

Avoid reactive budgeting practices: Preparing a budget only during major expenses or when profits decline is not proactive and may lead to financial mismanagement.

Consider the lifecycle of the business: While a budget may be prepared at the start of a business, it must be updated regularly to reflect current financial conditions and goals.

Adopt best practices: To ensure the budget provides useful information, establish a routine for preparing and reviewing budgets on a consistent basis, such as monthly or annually, depending on the business needs.