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

How does an investor typically obtain an ownership interest in a company?

By purchasing shares of the company's stock

By acting as an external auditor

By providing a loan to the company

By preparing the company's financial statements

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Verified step by step guidance

Understand the concept of ownership interest: Ownership interest in a company typically refers to having a stake or share in the company, which gives the investor certain rights, such as voting rights and a share in the company's profits.

Analyze the options provided: Evaluate each option to determine whether it results in ownership interest. For example, purchasing shares of stock directly represents ownership, while other options may not.

Option 1: 'By purchasing shares of the company's stock' - Purchasing shares means buying a portion of the company, which directly grants ownership interest.

Option 2: 'By acting as an external auditor' - External auditors are independent professionals who review financial statements but do not gain ownership interest in the company.

Option 3: 'By providing a loan to the company' - Providing a loan makes the investor a creditor, not an owner. Similarly, preparing financial statements (Option 4) is a service and does not result in ownership.