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 are considered appropriate uses of life insurance for business purposes except:

Funding a buy-sell agreement between business partners

Providing key person insurance to protect against the loss of a vital employee

Recording life insurance premiums as revenue on the income statement

Offering group life insurance as an employee benefit

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Verified step by step guidance

Understand the concept of life insurance in business: Life insurance is often used by businesses to mitigate financial risks associated with the death of key individuals or to provide benefits to employees.

Review the appropriate uses of life insurance for business purposes: These include funding buy-sell agreements, providing key person insurance, and offering group life insurance as an employee benefit.

Analyze the incorrect option: Recording life insurance premiums as revenue on the income statement is not an appropriate use of life insurance. Premiums paid for life insurance are typically treated as an expense, not revenue.

Clarify the accounting treatment: Life insurance premiums are recorded as an expense in the financial statements, and any proceeds from life insurance policies are treated as income only when received, not as regular revenue.

Conclude the reasoning: The correct answer is the option that does not align with proper accounting practices or business uses of life insurance, which is 'Recording life insurance premiums as revenue on the income statement.'