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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

An investment with more liquidity would be ideal for someone who:

needs quick access to their funds for unexpected expenses

is seeking long-term capital appreciation without concern for immediate cash needs

wants to lock in their money for a fixed period to earn higher returns

prefers investments with high risk and potential for high returns

Previous problemNext problem

Verified step by step guidance

Understand the concept of liquidity: Liquidity refers to how quickly and easily an asset or investment can be converted into cash without significantly affecting its value. Investments with high liquidity are ideal for individuals who may need immediate access to their funds.

Analyze the first option: 'Needs quick access to their funds for unexpected expenses.' This aligns with the concept of liquidity, as someone with this need would benefit from an investment that can be quickly converted to cash.

Evaluate the second option: 'Is seeking long-term capital appreciation without concern for immediate cash needs.' This does not align with the need for liquidity, as the focus here is on long-term growth rather than immediate access to funds.

Evaluate the third option: 'Wants to lock in their money for a fixed period to earn higher returns.' This option suggests a less liquid investment, as the funds are tied up for a fixed period, making it unsuitable for someone needing quick access to cash.

Evaluate the fourth option: 'Prefers investments with high risk and potential for high returns.' High-risk investments are not necessarily liquid and may not provide quick access to funds, making this option less relevant for someone prioritizing liquidity.