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

Which of the following is considered when determining the highest and best use of an asset in accounting?

Depreciation method

Physical possibility

Book value

Historical cost

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Verified step by step guidance

Understand the concept of 'highest and best use' in accounting. This refers to the use of an asset that maximizes its value, considering legal, physical, and financial factors.

Evaluate the physical possibility of the asset's use. This involves determining whether the asset can physically support the intended use, such as its location, size, or condition.

Consider legal permissibility. Check if the asset's use complies with zoning laws, regulations, or contractual restrictions.

Assess financial feasibility. Determine if the asset's use is economically viable and generates the highest financial return.

Recognize that depreciation method, book value, and historical cost are not directly relevant to determining the highest and best use of an asset. These are accounting measures, whereas 'highest and best use' focuses on maximizing the asset's value in practical terms.