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 about factoring accounts is true?

Factoring is only used for inventory management purposes.

Factoring involves selling accounts receivable to a third party to obtain immediate cash.

Factoring is a method used to depreciate fixed assets over time.

Factoring increases the amount of accounts receivable reported on the balance sheet.

Previous problemNext problem

Verified step by step guidance

Understand the concept of factoring in financial accounting: Factoring is a financial transaction where a company sells its accounts receivable (amounts owed by customers) to a third party, known as a factor, at a discount in exchange for immediate cash.

Analyze the first statement: 'Factoring is only used for inventory management purposes.' This is incorrect because factoring is related to accounts receivable, not inventory management.

Evaluate the second statement: 'Factoring involves selling accounts receivable to a third party to obtain immediate cash.' This is correct because it accurately describes the purpose and process of factoring.

Review the third statement: 'Factoring is a method used to depreciate fixed assets over time.' This is incorrect because depreciation is a separate accounting concept related to allocating the cost of fixed assets over their useful life, not factoring.

Assess the fourth statement: 'Factoring increases the amount of accounts receivable reported on the balance sheet.' This is incorrect because factoring reduces accounts receivable on the balance sheet, as the receivables are sold to a third party.