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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Struggling with Financial Accounting?

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Multiple Choice

Which one of the following is typically covered by a fidelity insurance policy in accounting?

Uncollectible accounts receivable

Inventory obsolescence

Depreciation of fixed assets

Employee theft or fraud

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Verified step by step guidance

Step 1: Begin by understanding the concept of fidelity insurance. Fidelity insurance is a type of coverage designed to protect businesses from losses caused by dishonest acts, such as theft or fraud, committed by employees.

Step 2: Analyze the options provided in the question. Uncollectible accounts receivable, inventory obsolescence, and depreciation of fixed assets are not related to employee dishonesty or fraud. These are typically addressed through other accounting practices or insurance policies.

Step 3: Recognize that employee theft or fraud is the specific risk that fidelity insurance is designed to cover. This aligns with the purpose of the policy, which is to safeguard the company against financial losses due to unethical behavior by employees.

Step 4: Confirm your understanding by considering real-world applications. For example, if an employee embezzles funds or steals company assets, fidelity insurance would provide compensation for the financial loss incurred.

Step 5: Conclude that the correct answer is 'Employee theft or fraud,' as it directly corresponds to the coverage provided by a fidelity insurance policy in accounting.