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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

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 statements about cash is true?

Cash equivalents are excluded from the definition of cash.

Cash includes currency, coins, and balances in checking accounts.

Cash does not include checks received from customers.

Cash is classified as a non-current asset on the balance sheet.

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Verified step by step guidance

Understand the definition of cash in financial accounting: Cash typically includes currency, coins, balances in checking accounts, and other items that are readily available for use in transactions.

Clarify the concept of cash equivalents: Cash equivalents are short-term, highly liquid investments that are easily convertible to known amounts of cash and are excluded from the definition of cash.

Evaluate the statement about checks received from customers: Checks received from customers are considered part of cash until they are deposited and cleared, so this statement is incorrect.

Analyze the classification of cash on the balance sheet: Cash is classified as a current asset because it is readily available for use within a short period, not as a non-current asset.

Identify the correct statement: Based on the analysis, the correct statement is that cash includes currency, coins, and balances in checking accounts.