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

Which of the following best describes how businesses are typically formed and how they grow over time?

Businesses are created automatically by banks and grow by increasing their interest rates.

Businesses are formed by purchasing shares on the stock market and grow only by issuing more shares.

Businesses are usually formed by individuals or groups who contribute capital, and they grow by reinvesting profits, obtaining external financing, or merging with/acquiring other companies.

Businesses are only formed by government agencies and grow solely through government funding.

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Verified step by step guidance

Step 1: Understand the concept of business formation. Businesses are typically formed by individuals or groups who contribute capital to start operations. This capital can come from personal savings, loans, or investments.

Step 2: Recognize the ways businesses grow over time. Growth can occur through reinvesting profits earned from operations back into the business to expand or improve its offerings.

Step 3: Learn about external financing. Businesses can grow by obtaining external financing, such as loans from banks, issuing bonds, or selling shares to investors.

Step 4: Explore mergers and acquisitions. Businesses may also grow by merging with other companies or acquiring other businesses to expand their market presence or diversify their operations.

Step 5: Eliminate incorrect options. Review the provided choices and identify the one that aligns with the typical formation and growth process of businesses, as described in the previous steps.