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 is a common form of long-term contract in accounting?

Construction contracts

Cash sales transactions

Retail sales agreements

Short-term service contracts

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Verified step by step guidance

Understand the concept of long-term contracts in accounting. These are agreements that span over multiple accounting periods and often involve significant financial commitments.

Recognize that construction contracts are a common form of long-term contracts. They typically involve extended timelines, progress billing, and revenue recognition over time.

Differentiate construction contracts from other options provided. Cash sales transactions are immediate and do not span multiple periods. Retail sales agreements are generally short-term and involve direct sales to customers. Short-term service contracts are not considered long-term as they are completed within a short timeframe.

Learn about the accounting treatment for construction contracts. Revenue is often recognized using methods like the percentage-of-completion method or the completed-contract method, depending on the circumstances.

Conclude that construction contracts are the correct answer because they align with the definition and characteristics of long-term contracts in accounting.