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

Business risk can encompass which of the following?

Risks associated solely with external audits

Risks limited to changes in accounting standards

Operational, financial, and compliance risks

Only risks related to tax reporting

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Verified step by step guidance

Understand the concept of business risk: Business risk refers to the potential for a company to experience losses or fail to achieve its objectives due to various factors. These risks can arise from internal operations, financial decisions, or external compliance requirements.

Identify the types of risks included in business risk: Business risk is not limited to a single category. It encompasses operational risks (related to day-to-day activities), financial risks (related to financial management and decisions), and compliance risks (related to adherence to laws and regulations).

Evaluate the options provided in the question: Analyze each option to determine whether it aligns with the broader definition of business risk. For example, risks associated solely with external audits or changes in accounting standards are narrower in scope and do not fully represent the concept of business risk.

Compare the correct answer to the definition of business risk: The correct answer, 'Operational, financial, and compliance risks,' aligns with the comprehensive nature of business risk, as it includes multiple dimensions of risk that a business may face.

Conclude why the other options are incorrect: Explain that the other options are too specific or limited in scope to represent the full range of business risks, which include operational, financial, and compliance risks.