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

Which of the following is a common source of long-term financing for a corporation?

Issuing corporate bonds

Short-term bank overdraft

Trade payables

Petty cash funds

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Verified step by step guidance

Understand the concept of long-term financing: Long-term financing refers to funds that a corporation raises to support its operations or investments for a period longer than one year. Common sources include issuing bonds, equity financing, and long-term loans.

Analyze the options provided: Review each option to determine whether it qualifies as a long-term financing source. For example, corporate bonds are typically issued for periods exceeding one year, making them a long-term financing source.

Evaluate 'Short-term bank overdraft': A bank overdraft is a short-term financing option, as it is typically used to cover temporary cash flow shortages and is repayable within a short period.

Evaluate 'Trade payables': Trade payables represent amounts owed to suppliers for goods or services purchased on credit. These are generally short-term liabilities and do not qualify as long-term financing.

Evaluate 'Petty cash funds': Petty cash funds are small amounts of money kept on hand for minor expenses. They are not a source of financing, let alone long-term financing. Therefore, the correct answer is 'Issuing corporate bonds,' as bonds are a common long-term financing method for corporations.