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

Which of the following statements about stock options is true?

Stock options must be exercised immediately upon grant.

Stock options are classified as a type of liability on the balance sheet.

Stock options give employees the right to purchase company shares at a predetermined price.

Stock options are only available to external investors, not employees.

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Verified step by step guidance

Understand the concept of stock options: Stock options are a form of compensation that gives employees the right to purchase company shares at a predetermined price, known as the exercise price, within a specific time frame.

Evaluate the first statement: 'Stock options must be exercised immediately upon grant.' This is incorrect because stock options typically have a vesting period and an expiration date, allowing employees to exercise them within a specified time frame, not immediately upon grant.

Evaluate the second statement: 'Stock options are classified as a type of liability on the balance sheet.' This is incorrect because stock options are generally classified as equity or part of stockholders' equity, not liabilities.

Evaluate the third statement: 'Stock options give employees the right to purchase company shares at a predetermined price.' This is correct because it accurately describes the purpose and function of stock options.

Evaluate the fourth statement: 'Stock options are only available to external investors, not employees.' This is incorrect because stock options are commonly granted to employees as part of their compensation package, not exclusively to external investors.