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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Making a good purchasing decision requires __________.

focusing only on past experiences

ignoring cost-benefit analysis

random selection of suppliers

relevant and reliable information

Previous problemNext problem

Verified step by step guidance

Understand the concept of 'relevant and reliable information' in financial accounting. Relevant information is data that can influence decision-making by helping predict future outcomes or confirm past decisions. Reliable information is accurate, verifiable, and free from bias.

Recognize that past experiences, while useful, are not the sole basis for making purchasing decisions. They must be supplemented with current, relevant, and reliable data to ensure informed choices.

Learn about cost-benefit analysis, which involves comparing the costs and benefits of different options to determine the most advantageous choice. Ignoring this analysis can lead to suboptimal decisions.

Understand that random selection of suppliers is not a sound strategy. It disregards critical factors such as quality, price, reliability, and the supplier's track record, which are essential for making informed purchasing decisions.

Apply the principle of using relevant and reliable information to evaluate suppliers. This includes analyzing financial data, market trends, supplier performance, and aligning the decision with organizational goals.