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 equity financing is FALSE?

Equity financing involves raising capital by selling shares of ownership in a company.

Equity financing increases the number of owners in a business.

Equity financing does not require repayment of principal or interest.

Equity financing requires the company to repay the funds with interest over time.

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Verified step by step guidance

Step 1: Understand the concept of equity financing. Equity financing involves raising capital by selling shares of ownership in a company. This means investors provide funds in exchange for ownership stakes, typically in the form of stock.

Step 2: Analyze the characteristics of equity financing. Equity financing does not require repayment of principal or interest, as it is not a loan. Instead, investors expect returns in the form of dividends or capital gains if the company performs well.

Step 3: Compare equity financing to debt financing. Debt financing involves borrowing money that must be repaid with interest over time, whereas equity financing does not involve repayment obligations.

Step 4: Evaluate the statement 'Equity financing requires the company to repay the funds with interest over time.' This statement is false because equity financing does not involve repayment of funds or interest; it provides ownership stakes to investors instead.

Step 5: Conclude that the false statement is the one claiming equity financing requires repayment with interest, as this characteristic applies to debt financing, not equity financing.