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

Which of the following items would most likely NOT be classified as a current asset?

Accounts Receivable

Equipment

Inventory

Prepaid Insurance

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the definition of a current asset. Current assets are assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.

Step 2: Analyze each option provided in the question. Determine whether each item meets the criteria of a current asset based on its liquidity or usage within one year.

Step 3: Evaluate 'Accounts Receivable.' Accounts receivable represents amounts owed to the company by customers for goods or services provided on credit. Since these amounts are typically collected within one year, they are classified as current assets.

Step 4: Evaluate 'Inventory.' Inventory includes goods available for sale or raw materials used in production. These are expected to be sold or used within the operating cycle, making them current assets.

Step 5: Evaluate 'Equipment.' Equipment is a long-term asset used in the operations of the business and is not expected to be sold or converted into cash within one year. Therefore, equipment would NOT be classified as a current asset.