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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

A long-term financial plan begins with which of the following?

Reconciling bank statements

Calculating depreciation expense

Forecasting sales or revenues

Preparing the cash flow statement

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Verified step by step guidance

Understand the concept of a long-term financial plan: A long-term financial plan is a strategic roadmap that outlines an organization's financial goals and the steps required to achieve them over an extended period, typically several years.

Recognize the importance of forecasting sales or revenues: Forecasting sales or revenues is a critical starting point for a long-term financial plan because it provides the foundation for estimating future cash inflows, which influence budgeting, investment decisions, and resource allocation.

Differentiate between the options provided: Reconciling bank statements is a short-term activity focused on ensuring accuracy in financial records. Calculating depreciation expense is an accounting task related to asset valuation, and preparing the cash flow statement is a reporting activity that summarizes cash inflows and outflows. None of these are the starting point for a long-term financial plan.

Focus on forecasting sales or revenues: This step involves analyzing market trends, historical data, and economic conditions to predict future sales performance. Techniques such as regression analysis, market research, and industry benchmarking can be used.

Understand how forecasting sales or revenues impacts the financial plan: Accurate revenue forecasts enable organizations to plan for expenses, investments, and financing needs, ensuring alignment with long-term strategic goals.