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

5. Inventory

Financial Statement Effects of Inventory Costing Methods

Financial Accounting

5. Inventory

Financial Statement Effects of Inventory Costing Methods

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

Which term best describes the financial rights to the assets of a business?

Owner's equity

Expenses

Liabilities

Revenue

Previous problemNext problem

Verified step by step guidance

Understand the concept of financial rights to the assets of a business. These rights represent the claims or ownership interest in the assets of the business.

Review the term 'Owner's equity.' It refers to the owner's claim to the assets of the business after all liabilities have been deducted. It is calculated as:

Owner's Equity = Assets - Liabilities

Examine the term 'Expenses.' Expenses are costs incurred by a business to generate revenue, and they reduce the owner's equity. They do not represent financial rights to the assets.

Analyze the term 'Liabilities.' Liabilities are obligations or debts owed by the business to external parties. They represent claims against the assets but are not the owner's financial rights.

Consider the term 'Revenue.' Revenue is the income earned by the business from its operations. While it contributes to increasing owner's equity, it is not directly the financial rights to the assets. Based on this analysis, the term 'Owner's equity' best describes the financial rights to the assets of a business.