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

Business Organization

Financial Accounting

1. Introduction to Accounting

Business Organization

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Multiple Choice

A company can best accomplish diversification into new industries by:

Reducing its workforce to cut costs

Increasing advertising for its current products

Focusing solely on its core competencies

Acquiring existing firms in the target industry

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Verified step by step guidance

Understand the concept of diversification: Diversification involves expanding into new industries or markets to reduce risk and increase growth opportunities. It often requires entering industries outside the company's current operations.

Evaluate the options provided: Reducing workforce and increasing advertising are cost-cutting or marketing strategies, not diversification strategies. Focusing solely on core competencies limits the company to its existing industry, which contradicts the goal of diversification.

Recognize the role of acquisitions: Acquiring existing firms in the target industry is a common and effective strategy for diversification. It allows the company to leverage the acquired firm's resources, expertise, and market presence.

Consider the financial implications: Acquisitions require significant investment and due diligence to ensure the target firm aligns with the company's strategic goals and provides value.

Conclude that acquiring existing firms in the target industry is the best approach for diversification, as it directly facilitates entry into new industries with established operations and reduces the risks associated with starting from scratch.