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

Business Organization

Financial Accounting

1. Introduction to Accounting

Business Organization

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Multiple Choice

Which two statements best define the characteristics of a business?

A business is an organization that provides goods or services to customers and seeks to earn a profit.

A business is an entity that only manages investments for private individuals.

A business is an entity that operates solely for charitable purposes and does not engage in commercial activities.

A business is an organization that is owned and operated by the government to provide public services.

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Verified step by step guidance

Step 1: Understand the definition of a business. A business is typically an organization that provides goods or services to customers with the goal of earning a profit. This is a fundamental characteristic of most businesses.

Step 2: Evaluate the options provided in the problem. Analyze each statement to determine whether it aligns with the definition of a business.

Step 3: Consider the first option: 'A business is an organization that provides goods or services to customers and seeks to earn a profit.' This aligns with the standard definition of a business and is likely correct.

Step 4: Review the second option: 'A business is an entity that only manages investments for private individuals.' This is too narrow and does not encompass the broader definition of a business.

Step 5: Examine the remaining options. 'A business is an entity that operates solely for charitable purposes and does not engage in commercial activities' describes a nonprofit organization, not a business. 'A business is an organization that is owned and operated by the government to provide public services' describes a government entity, not a typical business. Based on this analysis, the first option is the most accurate definition of a business.