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 costs is NOT recorded as part of the cost of land?

Legal fees to acquire the land

Cost of grading and clearing the land

Cost of demolishing an old building on the land

Cost of constructing a new building on the land

Previous problemNext problem

Verified step by step guidance

Understand the concept of land costs: Land costs include all expenditures necessary to acquire the land and prepare it for its intended use. These costs are capitalized, meaning they are recorded as part of the asset's value on the balance sheet.

Review the examples of costs typically included in the cost of land: These include legal fees to acquire the land, costs of grading and clearing the land, and costs of demolishing an old building on the land. These are all necessary to prepare the land for use.

Identify costs that are NOT part of the cost of land: Costs related to constructing a new building are not included in the cost of land. Instead, they are recorded as part of the cost of the building asset, as they pertain to a separate asset.

Clarify the distinction between land and building costs: Land is a separate asset from buildings, and costs associated with constructing a building are capitalized under the building asset, not the land asset.

Conclude that the cost of constructing a new building on the land is NOT recorded as part of the cost of land, as it pertains to a different asset category.