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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Which of the following pieces of information from Carrie's paystub is most important to use when creating her personal budget?

Employer's address

Net pay (take-home pay) after deductions

Employee identification number

Gross pay before any deductions

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Verified step by step guidance

Understand the purpose of a personal budget: A personal budget is a financial plan that helps an individual manage their income and expenses effectively. It focuses on the money available for spending and saving after mandatory deductions.

Identify the key information needed for budgeting: To create a personal budget, the most relevant figure is the net pay (take-home pay). This is the amount of money left after deductions such as taxes, insurance, and retirement contributions.

Evaluate the options provided: Review each piece of information from Carrie's paystub and determine its relevance to budgeting. For example, the employer's address and employee identification number are administrative details and do not directly impact budgeting. Gross pay before deductions is not as useful because it does not reflect the actual amount available for spending.

Focus on net pay: Net pay is the most important figure for budgeting because it represents the actual income Carrie has available to allocate toward expenses, savings, and discretionary spending.

Apply this understanding: When creating a personal budget, always prioritize net pay as the starting point for calculating income and planning expenses.