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 of the following statements about deposits is true?

Deposits are always classified as revenue in financial accounting.

Deposits are only relevant in managerial accounting, not in financial accounting.

Deposits are recorded as liabilities by banks because they represent amounts owed to customers.

Deposits decrease the cash balance of a business.

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Verified step by step guidance

Understand the concept of deposits in financial accounting: Deposits are amounts received by an entity, often in advance, and are typically recorded as liabilities because they represent an obligation to provide goods, services, or return the funds in the future.

Analyze the first statement: 'Deposits are always classified as revenue in financial accounting.' This is incorrect because deposits are not revenue until the obligation is fulfilled (e.g., goods delivered or services rendered).

Analyze the second statement: 'Deposits are only relevant in managerial accounting, not in financial accounting.' This is incorrect because deposits are relevant in financial accounting as they are recorded on the balance sheet as liabilities.

Analyze the third statement: 'Deposits are recorded as liabilities by banks because they represent amounts owed to customers.' This is correct because banks treat customer deposits as liabilities since they owe the deposited funds back to the customers upon request.

Analyze the fourth statement: 'Deposits decrease the cash balance of a business.' This is incorrect because deposits increase the cash balance of a business or bank, as they represent incoming funds.