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 would be considered assets in financial accounting?

Accounts Payable

Accounts Receivable

Inventory

Owner's Equity

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Verified step by step guidance

Step 1: Understand the definition of an asset in financial accounting. Assets are resources owned or controlled by a business that are expected to provide future economic benefits.

Step 2: Analyze each term provided in the problem. For example, 'Accounts Payable' represents liabilities, which are obligations the company owes to others, and therefore it is not an asset.

Step 3: Identify 'Accounts Receivable' as an asset because it represents money owed to the company by customers for goods or services provided, which will bring future economic benefits.

Step 4: Recognize 'Inventory' as an asset because it consists of goods available for sale or raw materials used in production, which are expected to generate revenue in the future.

Step 5: Clarify that 'Owner's Equity' is not an asset but rather the residual interest in the assets of the entity after deducting liabilities. It represents the owner's claim on the business, not a resource controlled by the business.