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

How do corporations typically raise capital?

Issuing shares of stock and selling bonds

Withdrawing funds from owners' personal accounts

Receiving government grants exclusively

Collecting membership fees from employees

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Verified step by step guidance

Understand the concept of capital raising: Corporations raise capital to fund their operations, expand their business, or invest in new projects. This is typically done through external sources rather than relying on personal funds or internal contributions.

Identify the common methods of raising capital: Corporations primarily raise capital by issuing shares of stock (equity financing) or selling bonds (debt financing). These methods allow them to access funds from investors or lenders.

Eliminate incorrect options: Review the provided options and rule out those that are not typical methods of raising capital for corporations. For example, withdrawing funds from owners' personal accounts is not applicable to corporations, as they are separate legal entities.

Analyze the role of government grants: While corporations may occasionally receive government grants, this is not a primary or exclusive method of raising capital. Grants are often specific to certain industries or projects and are not a general practice for all corporations.

Conclude with the correct answer: Based on the analysis, the most accurate and typical methods for corporations to raise capital are issuing shares of stock and selling bonds. These methods align with standard financial practices.