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

In financial accounting, real estate investments are classified as:

Revenue

Current liabilities

Owner's equity

Long-term assets

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Verified step by step guidance

Understand the classification of assets in financial accounting. Assets are resources owned by a company that provide future economic benefits. They are typically divided into current assets and long-term assets based on their liquidity and usage timeframe.

Recognize that real estate investments are not typically liquid and are held for long-term purposes, such as generating rental income or appreciating in value over time. This makes them unsuitable for classification as current assets.

Eliminate the incorrect options: Revenue refers to income earned from business operations, current liabilities are obligations due within a year, and owner's equity represents the residual interest in the assets of the entity after deducting liabilities. None of these categories align with the nature of real estate investments.

Identify that real estate investments are classified as long-term assets because they are held for extended periods and are not intended for immediate sale or consumption.

Conclude that the correct classification for real estate investments in financial accounting is long-term assets, as they are resources expected to provide economic benefits over a prolonged period.