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

Business Organization

Financial Accounting

1. Introduction to Accounting

Business Organization

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Multiple Choice

Which of the following statements about the ownership of a commercial bank is correct?

A commercial bank is owned by its employees.

A commercial bank is owned by the government.

A commercial bank is owned by its account holders.

A commercial bank is owned by its shareholders.

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Verified step by step guidance

Understand the concept of ownership in a commercial bank: A commercial bank is a for-profit financial institution that provides banking services such as accepting deposits, lending money, and offering financial products. Ownership typically lies with individuals or entities that have invested in the bank by purchasing its shares.

Clarify the role of shareholders: Shareholders are individuals or entities that own shares (or stock) in the bank. They are the true owners of the bank and have a claim on its profits and assets, proportional to the number of shares they hold.

Eliminate incorrect options: Analyze the provided options. Employees, the government, and account holders do not own the bank unless they are also shareholders. Employees work for the bank, the government regulates it, and account holders are customers who use its services.

Identify the correct statement: The correct answer is that a commercial bank is owned by its shareholders. Shareholders have voting rights in major decisions and receive dividends if the bank distributes profits.

Summarize the reasoning: Ownership of a commercial bank is tied to shareholding. This structure allows the bank to raise capital by selling shares to investors, who then become part-owners of the institution.