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

Margaret puts money into her savings account each month. In this example, money is functioning as a:

Unit of account

Medium of exchange

Store of value

Source of revenue

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Verified step by step guidance

Understand the concept of 'Store of Value': Money serves as a store of value when it retains its purchasing power over time, allowing individuals to save and use it in the future.

Analyze the scenario: Margaret is putting money into her savings account each month, which indicates she is saving money for future use.

Compare the options: A 'Unit of account' refers to money being used to measure the value of goods and services. A 'Medium of exchange' refers to money being used to facilitate transactions. Neither of these directly applies to saving money for future use.

Identify the correct option: The act of saving money aligns with the 'Store of value' function, as Margaret is relying on money to retain its value over time.

Conclude: The correct answer is 'Store of value' because Margaret is using money to preserve its value for future use rather than spending or measuring its worth immediately.