Table of contents

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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

5. Inventory

Physical Inventory Count, Ownership of Goods, and Consigned Goods

Financial Accounting

5. Inventory

Physical Inventory Count, Ownership of Goods, and Consigned Goods

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Multiple Choice

Plant assets are defined as:

Inventory items held for resale to customers.

Tangible long-term assets used in the operations of a business and not intended for sale.

Short-term investments held for trading purposes.

Intangible assets such as patents and copyrights.

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Understand the definition of plant assets: Plant assets are tangible long-term assets used in the operations of a business and are not intended for sale.

Differentiate plant assets from inventory: Inventory consists of items held for resale to customers, whereas plant assets are used in the business operations and not sold.

Distinguish plant assets from short-term investments: Short-term investments are held for trading purposes, while plant assets are long-term and operational in nature.

Clarify the difference between plant assets and intangible assets: Intangible assets, such as patents and copyrights, lack physical substance, whereas plant assets are tangible and physical.

Conclude that plant assets are physical, long-term assets used in business operations, such as buildings, machinery, and equipment, and are not intended for sale.