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 is NOT true about a Real Estate Investment Trust (REIT)?

REITs are exempt from paying any federal income taxes on their earnings.

A REIT must distribute at least 90% of its taxable income to shareholders annually.

REITs allow individual investors to earn a share of the income produced through commercial real estate ownership.

REITs are required to invest primarily in real estate assets.

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Verified step by step guidance

Step 1: Understand the concept of a Real Estate Investment Trust (REIT). A REIT is a company that owns, operates, or finances income-generating real estate. It allows individual investors to earn a share of the income produced through commercial real estate ownership without directly owning the properties.

Step 2: Review the tax treatment of REITs. REITs are generally exempt from paying federal income taxes on their earnings, provided they meet certain requirements, such as distributing at least 90% of their taxable income to shareholders annually.

Step 3: Analyze the requirement for income distribution. A REIT must distribute at least 90% of its taxable income to shareholders annually to maintain its tax-exempt status. This is a key characteristic of REITs.

Step 4: Examine the investment focus of REITs. REITs are required to invest primarily in real estate assets, such as commercial properties, residential properties, or mortgages. This is a fundamental aspect of their operations.

Step 5: Identify the statement that is NOT true. Based on the above analysis, determine which statement contradicts the characteristics or requirements of a REIT. Focus on the statement about federal income taxes and verify its accuracy.