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 statements best describes the most important thing to remember about bank customers from an accounting perspective?

They are not reflected in the bank's accounting records.

They are considered assets to the bank because their deposits increase the bank's cash balance.

They are recorded as equity holders in the bank's financial statements.

They are considered liabilities to the bank because their deposits represent amounts owed by the bank.

Previous problemNext problem

Verified step by step guidance

Understand the concept of liabilities in accounting: Liabilities are obligations that a company owes to external parties, which are expected to be settled over time through the transfer of money, goods, or services.

Recognize the nature of customer deposits in a bank: When customers deposit money into a bank, the bank is obligated to return these funds upon request or at maturity. This obligation makes customer deposits a liability for the bank.

Clarify why customer deposits are not considered assets: Assets are resources owned by the bank that provide future economic benefits. While the bank holds the cash deposited by customers, it does not own these funds; it owes them back to the customers.

Distinguish liabilities from equity: Equity represents the ownership interest in the bank, such as shareholders' investments. Customer deposits are not equity because they do not represent ownership; they are amounts owed by the bank.

Conclude that customer deposits are liabilities: From an accounting perspective, the most important thing to remember is that customer deposits are considered liabilities because they represent amounts the bank owes to its customers.