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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

The optimal capital structure is determined by several factors, including all of the following except:

Cost of debt

Personal preferences of shareholders

Tax considerations

Business risk

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Verified step by step guidance

Understand the concept of 'optimal capital structure': It refers to the mix of debt and equity financing that minimizes the company's cost of capital while maximizing its value.

Review the factors that influence the optimal capital structure: These typically include cost of debt, tax considerations, and business risk, as they directly impact the company's financial performance and risk profile.

Analyze why 'personal preferences of shareholders' is not a factor: Shareholder preferences are subjective and do not directly affect the financial metrics or risk-return trade-offs that determine the optimal capital structure.

Consider the role of cost of debt: Lower cost of debt can make debt financing more attractive, but excessive debt increases financial risk.

Evaluate tax considerations and business risk: Tax benefits from interest deductions and the inherent risk of the business are critical factors in determining the balance between debt and equity.