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

A _____ is a short-term investment that is considered highly liquid.

accounts receivable

long-term asset

cash equivalent

inventory

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Verified step by step guidance

Understand the concept of 'cash equivalent': A cash equivalent is a short-term investment that is highly liquid and can be quickly converted into cash with minimal risk of loss in value.

Review the characteristics of cash equivalents: They typically have a maturity period of three months or less, are readily convertible to a known amount of cash, and are subject to an insignificant risk of changes in value.

Compare the given options: Accounts receivable, long-term assets, and inventory are not considered cash equivalents because they are either not liquid or not short-term investments.

Identify the correct answer: Cash equivalents meet the criteria of being highly liquid and short-term investments, making them the correct choice in this context.

Apply this understanding to similar problems: When identifying cash equivalents, focus on their liquidity, short-term nature, and minimal risk of value fluctuation.