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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Which of the following is a benefit derived from budgeting?

It eliminates the need for management decision-making.

It removes all financial risks from operations.

It guarantees company profitability.

It provides a basis for performance evaluation.

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Verified step by step guidance

Understand the purpose of budgeting: Budgeting is a financial planning tool used by organizations to allocate resources, set goals, and monitor performance. It does not eliminate decision-making, remove risks, or guarantee profitability, but it helps in evaluating performance against set benchmarks.

Analyze the incorrect options: The statement 'It eliminates the need for management decision-making' is incorrect because budgeting requires active involvement and decision-making from management to set realistic goals and make adjustments.

Evaluate the second incorrect option: 'It removes all financial risks from operations' is incorrect because budgeting cannot eliminate risks; it can only help in identifying and mitigating them.

Consider the third incorrect option: 'It guarantees company profitability' is incorrect because profitability depends on various factors, including market conditions, operational efficiency, and external influences, which budgeting alone cannot control.

Identify the correct benefit: 'It provides a basis for performance evaluation' is correct because budgeting allows organizations to compare actual results with planned objectives, helping management assess efficiency and effectiveness in achieving goals.