Table of contents

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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

Savings should be treated as another type of:

Expense

Liability

Revenue

Asset

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Verified step by step guidance

Understand the concept of savings in financial accounting. Savings represent money set aside for future use, which is typically held in a bank account or other financial instruments.

Recall the definition of an asset in accounting. An asset is a resource owned by an individual or entity that has economic value and is expected to provide future benefits.

Compare savings to the characteristics of an asset. Savings are funds that are owned, have economic value, and can be used in the future, aligning with the definition of an asset.

Eliminate the other options: Expenses are costs incurred, liabilities are obligations owed, and revenue is income earned. Savings do not fit these definitions.

Conclude that savings should be treated as an asset because they represent a resource with economic value that is owned and can provide future benefits.