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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

A liability where proof of fault or negligence is not required is defined as:

Strict liability

Vicarious liability

Contingent liability

Constructive liability

Previous problemNext problem

Verified step by step guidance

Understand the concept of liability in financial accounting, which refers to obligations or debts owed by an entity.

Learn the definition of 'strict liability,' which is a legal concept where a party is held responsible for damages or harm without the need to prove fault or negligence.

Compare 'strict liability' with other types of liabilities mentioned: 'vicarious liability' (responsibility for actions of another party, such as an employee), 'contingent liability' (potential liability dependent on a future event), and 'constructive liability' (liability inferred by law based on circumstances).

Identify that the key characteristic of 'strict liability' is the absence of the requirement to prove fault or negligence, making it distinct from the other types of liabilities listed.

Conclude that the correct answer to the problem is 'strict liability,' as it matches the definition provided in the question.