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

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

On the balance sheet, which of the following is classified as a current asset?

Retained Earnings

Equipment

Common Stock

Accounts Receivable

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Understand the concept of current assets: Current assets are resources that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer. Examples include cash, accounts receivable, inventory, and prepaid expenses.

Review the options provided: Retained Earnings, Equipment, Common Stock, and Accounts Receivable. Determine which of these fits the definition of a current asset.

Analyze Retained Earnings: Retained Earnings represent accumulated profits that are reinvested in the business and are part of equity, not an asset. Therefore, it is not classified as a current asset.

Analyze Equipment: Equipment is a long-term asset used in operations and is classified as a non-current asset. It does not meet the criteria for current assets.

Analyze Accounts Receivable: Accounts Receivable represents amounts owed to the company by customers for goods or services provided on credit. Since these amounts are expected to be collected within one year, they are classified as a current asset on the balance sheet.