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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Why might working on a commission basis make dealing with personal finances more difficult?

Taxes are not applicable to commission-based earnings, simplifying financial planning.

Commission-based jobs always provide a fixed monthly salary, making finances predictable.

Commission-based income is always higher than salaried income, so financial management is unnecessary.

Income can fluctuate significantly from month to month, making budgeting and planning challenging.

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Verified step by step guidance

Understand the concept of commission-based income: Commission-based earnings are typically tied to performance or sales, meaning the income can vary significantly depending on the individual's success in a given period.

Recognize the challenge of fluctuating income: Unlike a fixed salary, commission-based income does not guarantee a consistent amount each month, which can make it harder to predict and plan for expenses.

Consider the impact on budgeting: With variable income, individuals may struggle to allocate funds for fixed expenses (e.g., rent, utilities) and discretionary spending, requiring careful financial planning.

Acknowledge the tax implications: Commission-based earnings are subject to taxes, and individuals may need to estimate and set aside funds for tax payments, which can add complexity to financial management.

Understand the importance of financial planning: To manage fluctuating income effectively, individuals may need to create a budget that accounts for variability, build an emergency fund, and prioritize saving during high-income months.