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 is an example of how finance is used throughout a firm?

Evaluating investment opportunities for new projects

Auditing the company's financial statements

Recording daily sales transactions in the general ledger

Preparing tax returns for the company

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Verified step by step guidance

Understand the role of finance in a firm: Finance involves managing the firm's resources, evaluating investment opportunities, and ensuring the firm achieves its financial goals. It is distinct from accounting tasks like auditing, recording transactions, or preparing tax returns.

Analyze the options provided: Evaluate each option to determine whether it aligns with the primary functions of finance. For example, evaluating investment opportunities is a financial decision, while auditing, recording transactions, and preparing tax returns are accounting tasks.

Focus on the correct option: Evaluating investment opportunities for new projects is a financial activity because it involves assessing the potential returns and risks of allocating resources to a project, which is a key aspect of financial management.

Clarify the distinction: Auditing financial statements ensures compliance and accuracy, recording daily sales transactions is part of bookkeeping, and preparing tax returns is a tax-related accounting task. These are not directly related to finance's role in resource allocation and investment evaluation.

Conclude: The correct answer is 'Evaluating investment opportunities for new projects,' as it directly reflects how finance is used throughout a firm to make strategic decisions about resource allocation and growth.