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

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

Which of the following is commonly used to estimate the value of a business?

Bank reconciliation

Discounted Cash Flow (DCF) analysis

LIFO inventory method

Straight-line depreciation

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Verified step by step guidance

Understand the concept of business valuation: Business valuation is the process of determining the economic value of a business or company. It is commonly used for mergers, acquisitions, or investment purposes.

Identify the methods listed in the problem: The options provided are Bank reconciliation, Discounted Cash Flow (DCF) analysis, LIFO inventory method, and Straight-line depreciation.

Evaluate each method: Bank reconciliation is used to match a company's bank statement with its accounting records, not for business valuation. LIFO inventory method is an inventory costing method, and Straight-line depreciation is a method to allocate the cost of an asset over its useful life. These are not typically used for business valuation.

Focus on Discounted Cash Flow (DCF) analysis: DCF analysis is a widely used method to estimate the value of a business. It involves projecting future cash flows and discounting them to their present value using a discount rate, which reflects the risk and time value of money.

Conclude that DCF analysis is the correct answer: Based on the evaluation, DCF analysis is the most appropriate method for estimating the value of a business among the options provided.