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 the most likely use of capital invested in a business?

Donating to unrelated charities

Paying personal expenses of the owner

Investing in competitors' businesses

Purchasing equipment and inventory

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Verified step by step guidance

Understand the concept of capital investment: Capital invested in a business refers to the funds provided by owners or investors to support the operations and growth of the business. It is typically used for activities that directly contribute to the business's success and profitability.

Evaluate the options provided: Analyze each option to determine whether it aligns with the purpose of capital investment. For example, donating to unrelated charities and paying personal expenses of the owner do not contribute to the business's operations or growth.

Consider the relevance of investing in competitors' businesses: While investing in competitors might provide some strategic benefits, it is not a common or direct use of capital invested in one's own business. The focus should remain on activities that enhance the business itself.

Identify the correct use of capital: Purchasing equipment and inventory is a direct and essential use of capital invested in a business. Equipment is necessary for production or operations, and inventory is required for sales and revenue generation.

Conclude that purchasing equipment and inventory is the most likely use of capital invested in a business, as it directly supports the business's operations and growth objectives.