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

Why might a business choose to lease office space rather than buy office space?

Leasing typically results in higher long-term equity for the business.

Leasing eliminates all maintenance responsibilities for the business.

Leasing allows the business to record the office space as an owned asset on the balance sheet.

Leasing provides greater flexibility and requires less upfront capital than purchasing.

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Verified step by step guidance

Understand the concept of leasing versus buying: Leasing involves renting an asset for a specified period, while buying involves purchasing the asset outright, which requires significant upfront capital.

Consider the financial implications: Leasing typically requires less upfront capital compared to buying, making it a more accessible option for businesses with limited funds.

Evaluate flexibility: Leasing provides greater flexibility as businesses can adjust their space needs more easily by ending or renegotiating the lease, whereas buying ties the business to a specific location and asset.

Analyze maintenance responsibilities: While leasing may reduce some maintenance responsibilities, it does not eliminate them entirely. Maintenance terms depend on the lease agreement.

Clarify accounting treatment: Leased office space is not recorded as an owned asset on the balance sheet unless it qualifies as a finance lease under accounting standards. This distinction is important for financial reporting purposes.