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

An agreement based on an amount of time in which a person borrows or uses an asset is a _______.

dividend

prepaid expense

lease

equity investment

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Verified step by step guidance

Step 1: Understand the concept of a lease. A lease is an agreement where one party (the lessee) uses an asset owned by another party (the lessor) for a specified period in exchange for payment.

Step 2: Compare the term 'lease' with the other options provided: dividend, prepaid expense, and equity investment. Each of these terms has a distinct meaning in financial accounting.

Step 3: Define 'dividend.' A dividend is a distribution of a company's earnings to its shareholders, typically in the form of cash or additional shares.

Step 4: Define 'prepaid expense.' A prepaid expense is an asset that represents payments made in advance for goods or services to be received in the future.

Step 5: Define 'equity investment.' An equity investment refers to the purchase of shares in a company, giving the investor ownership interest in that company. None of these terms match the description of an agreement based on time to borrow or use an asset, which is a lease.