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

Evidence of an agency relationship can be found in which of the following documents?

A purchase invoice

A bank reconciliation statement

A trial balance

A power of attorney agreement

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Understand the concept of an agency relationship: An agency relationship occurs when one party (the agent) is authorized to act on behalf of another party (the principal) in business transactions or legal matters.

Identify the purpose of a power of attorney agreement: A power of attorney agreement is a legal document that explicitly grants authority to an agent to act on behalf of the principal in specified matters, establishing evidence of an agency relationship.

Compare the other options: A purchase invoice, bank reconciliation statement, and trial balance are financial documents that do not establish or indicate an agency relationship. They are used for recording transactions, reconciling accounts, and summarizing financial data, respectively.

Recognize why the power of attorney agreement is the correct answer: It directly demonstrates the existence of an agency relationship by legally authorizing the agent to act for the principal.

Conclude that the power of attorney agreement is the most relevant document for evidence of an agency relationship, as it explicitly defines the roles and responsibilities of the agent and principal.