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

Long-term investments are most commonly used to save money for which of the following purposes?

Retirement planning

Daily operating expenses

Petty cash needs

Short-term inventory purchases

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Verified step by step guidance

Understand the concept of long-term investments: These are assets or funds that are intended to be held for an extended period, typically more than a year, to achieve financial goals such as wealth accumulation or retirement planning.

Analyze the purpose of long-term investments: They are generally used for goals that require significant time to achieve, such as retirement planning, rather than short-term needs like daily operating expenses or petty cash.

Evaluate the options provided: Daily operating expenses, petty cash needs, and short-term inventory purchases are all short-term financial needs and are not suitable for long-term investments.

Recognize that retirement planning aligns with the nature of long-term investments: Retirement planning requires saving and investing over decades to ensure financial security in later years.

Conclude that the correct purpose for long-term investments is retirement planning, as it matches the long-term horizon and financial goals associated with these types of investments.