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 NOT a benefit of buying an existing business?

Established brand recognition

Guaranteed increase in profits without any effort

Lower risk of failure compared to starting a new business

Immediate access to established customers

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Verified step by step guidance

Step 1: Understand the context of the question. The problem is asking which option is NOT a benefit of buying an existing business. This requires evaluating the listed benefits and identifying the one that is unrealistic or incorrect.

Step 2: Review the first option, 'Established brand recognition.' Buying an existing business often provides the benefit of inheriting a recognized brand, which can help attract customers and build trust. This is a valid benefit.

Step 3: Analyze the second option, 'Guaranteed increase in profits without any effort.' Consider whether this is realistic. Profits depend on various factors such as market conditions, management, and operational efficiency. Guarantees without effort are generally unrealistic in business.

Step 4: Examine the third option, 'Lower risk of failure compared to starting a new business.' Buying an existing business often comes with established processes, customers, and market presence, which can reduce the risk of failure compared to starting from scratch. This is a valid benefit.

Step 5: Evaluate the fourth option, 'Immediate access to established customers.' Purchasing an existing business typically provides access to its customer base, which can generate revenue immediately. This is a valid benefit. Based on the analysis, the second option is NOT a benefit of buying an existing business.