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, a down payment is an upfront payment of what to make a purchase?

Cash

Inventory

Accounts Receivable

Prepaid Expenses

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Verified step by step guidance

Understand the concept of a down payment: A down payment is an upfront payment made in cash or equivalent to secure a purchase or transaction. It is typically used in situations like buying inventory, property, or other assets.

Analyze the options provided: Cash, Inventory, Accounts Receivable, and Prepaid Expenses. Determine which of these represents the form of payment made upfront.

Recognize that a down payment is typically made using cash or cash equivalents, as it represents an immediate transfer of funds to the seller.

Eliminate incorrect options: Inventory refers to goods held for sale, Accounts Receivable represents amounts owed to the company by customers, and Prepaid Expenses are payments made for future benefits. None of these are forms of upfront payment.

Conclude that the correct answer is 'Cash,' as it is the most appropriate form of payment for a down payment in financial accounting.