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

Which of the following is considered useful information when calculating the amount of life insurance needed for an income earner?

The income earner's current and future expected earnings

The income earner's favorite vacation destination

The color of the income earner's car

The number of pets owned by the income earner

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Verified step by step guidance

Step 1: Understand the context of the question. The problem is asking about factors relevant to calculating the amount of life insurance needed for an income earner. Life insurance is typically calculated based on financial needs and obligations, not personal preferences or unrelated details.

Step 2: Identify the key financial factors that influence life insurance calculations. These include the income earner's current earnings, future expected earnings, outstanding debts, living expenses, and financial goals for dependents.

Step 3: Eliminate irrelevant information. The income earner's favorite vacation destination, the color of their car, and the number of pets owned are not financial factors and do not contribute to the calculation of life insurance needs.

Step 4: Focus on the relevant information. The income earner's current and future expected earnings are critical because they determine the financial support that would need to be replaced in the event of their passing.

Step 5: Conclude that the correct answer is the income earner's current and future expected earnings, as this information directly impacts the calculation of life insurance needs.