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

Under the different types of accounting, how would a business’s computers typically be classified on the balance sheet?

As prepaid expenses

As inventory

As intangible assets

As property, plant, and equipment (PPE)

Previous problemNext problem

Verified step by step guidance

Understand the classification of assets on the balance sheet. Assets are typically divided into categories such as current assets, non-current assets, intangible assets, and property, plant, and equipment (PPE).

Recognize that computers are physical, tangible assets that are used in the operations of the business and are not intended for resale. This makes them part of the non-current asset category.

Learn the definition of property, plant, and equipment (PPE). PPE includes long-term tangible assets such as buildings, machinery, vehicles, and equipment that are used in the production or operations of a business.

Compare the other options provided in the problem: Prepaid expenses are payments made in advance for services or goods, inventory refers to goods held for sale, and intangible assets are non-physical assets like patents or trademarks. Computers do not fit into any of these categories.

Conclude that computers are classified as property, plant, and equipment (PPE) on the balance sheet because they are tangible, long-term assets used in the business's operations.