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

When a firm goes bankrupt, shareholders ______.

automatically receive a portion of the firm's remaining assets before creditors are paid

are required to pay the firm's outstanding debts from their personal assets

may lose the value of their investment but are generally not personally liable for the firm's debts

are guaranteed to recover their initial investment

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Verified step by step guidance

Understand the concept of limited liability: In financial accounting, shareholders of a corporation have limited liability, meaning their financial risk is limited to the amount they have invested in the company. They are not personally responsible for the firm's debts.

Analyze the bankruptcy process: When a firm goes bankrupt, its remaining assets are distributed to creditors first, as they have priority over shareholders in the liquidation process.

Consider the implications for shareholders: Shareholders may lose the value of their investment in the firm because they are last in line to receive any remaining assets after creditors are paid.

Clarify personal liability: Shareholders are generally not personally liable for the firm's debts. Their liability is limited to their investment in the company, and they are not required to use personal assets to cover the firm's outstanding debts.

Review guarantees: Shareholders are not guaranteed to recover their initial investment in the event of bankruptcy. Their financial loss is limited to the value of their shares, but there is no assurance of asset recovery.