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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Multiple Choice

All of the following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT:

Contributions to a TSA are made with pre-tax dollars, reducing taxable income.

Earnings within a TSA grow tax-deferred until withdrawal.

TSAs are typically offered to employees of public schools and certain non-profit organizations.

TSAs can be established by any for-profit corporation for its employees.

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Verified step by step guidance

Understand the concept of a Tax Sheltered Annuity (TSA): A TSA is a retirement savings plan that allows employees of certain organizations, such as public schools and non-profits, to contribute pre-tax dollars to their retirement accounts. Contributions reduce taxable income, and earnings grow tax-deferred until withdrawal.

Review the characteristics of TSAs: Contributions are made with pre-tax dollars, earnings grow tax-deferred, and they are typically offered to employees of public schools and certain non-profit organizations.

Identify the exception in the statements provided: The statement 'TSAs can be established by any for-profit corporation for its employees' is incorrect because TSAs are specifically designed for employees of public schools and certain non-profit organizations, not for-profit corporations.

Compare the incorrect statement with the correct characteristics of TSAs: For-profit corporations typically offer other types of retirement plans, such as 401(k) plans, rather than TSAs.

Conclude that the correct answer is the statement that does not align with the definition and characteristics of TSAs: 'TSAs can be established by any for-profit corporation for its employees.'