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

Which statement best describes the role of a credit agency in accounting?

A credit agency prepares financial statements for public companies.

A credit agency manages the payroll and tax filings for businesses.

A credit agency evaluates the creditworthiness of individuals and organizations.

A credit agency audits the financial records of corporations.

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Verified step by step guidance

Understand the role of a credit agency: A credit agency is an organization that evaluates the creditworthiness of individuals and organizations. This means they assess the ability of a borrower to repay debt based on their financial history and other factors.

Eliminate incorrect options: Review each option provided in the question and determine if it aligns with the role of a credit agency.

Option 1: 'A credit agency prepares financial statements for public companies' - This is incorrect because preparing financial statements is typically the responsibility of the company's accounting department or external auditors.

Option 2: 'A credit agency manages the payroll and tax filings for businesses' - This is incorrect because payroll and tax filings are usually handled by the company's internal accounting team or outsourced to payroll service providers.

Option 4: 'A credit agency audits the financial records of corporations' - This is incorrect because auditing is performed by external or internal auditors, not credit agencies. Therefore, the correct answer is: 'A credit agency evaluates the creditworthiness of individuals and organizations.'