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

What is the main difference between a stock and a bond?

A stock is only issued by governments, while a bond is only issued by corporations.

A stock guarantees fixed interest payments, while a bond provides dividends based on company profits.

A stock represents ownership in a company, while a bond represents a loan made to a company or government.

A stock is a short-term investment, while a bond is always a long-term investment.

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Verified step by step guidance

Understand the concept of a stock: A stock represents ownership in a company. When you purchase a stock, you are buying a share of the company, which gives you partial ownership and potentially voting rights in corporate decisions.

Understand the concept of a bond: A bond represents a loan made to a company or government. When you purchase a bond, you are lending money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity.

Compare the key difference: Stocks signify ownership, meaning the investor becomes a shareholder and may benefit from dividends and capital appreciation. Bonds signify debt, meaning the investor is a creditor and earns fixed interest payments over time.

Clarify the incorrect options: Stocks are not exclusively issued by governments; they are primarily issued by corporations. Bonds are not exclusively issued by corporations; governments also issue bonds. Stocks do not guarantee fixed interest payments, and bonds do not provide dividends based on company profits.

Summarize the correct answer: The main difference is that a stock represents ownership in a company, while a bond represents a loan made to a company or government.