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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

To know your net worth, subtract your liabilities from your _____.

equity

expenses

assets

revenues

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Verified step by step guidance

Understand the concept of net worth: Net worth is calculated as the difference between what you own (assets) and what you owe (liabilities). It represents the financial position of an individual or entity.

Identify the components involved: Assets are resources owned by an individual or entity that have economic value, while liabilities are obligations or debts owed to others.

Recall the formula for net worth: Net Worth = Assets - Liabilities. This formula is fundamental in financial accounting and personal finance.

Analyze the options provided: Equity, expenses, and revenues are not directly used in the calculation of net worth. Equity represents ownership interest, expenses are costs incurred, and revenues are income earned.

Select the correct term: Assets are the correct term to use in the formula for net worth, as they represent the total value of owned resources that are reduced by liabilities to determine net worth.