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 NOT considered an asset in financial accounting?

Prepaid Expenses

Cash

Accounts Payable

Inventory

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Understand the definition of an asset: In financial accounting, an asset is a resource owned or controlled by a company that is expected to provide future economic benefits.

Review the items listed in the problem: Prepaid Expenses, Cash, Accounts Payable, and Inventory.

Analyze each item: Prepaid Expenses represent payments made in advance for goods or services, which are considered assets because they provide future benefits. Cash is a liquid asset used for transactions. Inventory is an asset because it represents goods available for sale or production.

Identify the exception: Accounts Payable is a liability, not an asset. It represents amounts owed by the company to suppliers or creditors for goods or services received.

Conclude that Accounts Payable is NOT considered an asset in financial accounting, as it does not provide future economic benefits but instead represents an obligation.