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

When a company "goes public," which of the following best describes what happens?

Only a small group of private investors are allowed to invest in the company.

The company can no longer issue any new shares.

The company is required to stop all financial reporting to the public.

The company's shares become available for purchase by the general public on a stock exchange.

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Verified step by step guidance

Understand the concept of 'going public': When a company 'goes public,' it means the company is transitioning from private ownership to public ownership by offering its shares for sale to the general public through a stock exchange.

Clarify the implications of going public: The company is now subject to regulations and reporting requirements set by governing bodies like the Securities and Exchange Commission (SEC) in the United States. This ensures transparency for investors.

Eliminate incorrect options: Analyze each option provided in the problem. For example, 'Only a small group of private investors are allowed to invest in the company' is incorrect because going public means shares are available to the general public, not just private investors.

Evaluate the correct option: The correct description is 'The company's shares become available for purchase by the general public on a stock exchange.' This is the defining characteristic of a company going public.

Summarize the process: Going public allows the company to raise capital from a broader pool of investors, increases its visibility, and subjects it to stricter financial reporting and governance standards.