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 should NOT be considered cash by an accountant?

Money orders

Coins and currency on hand

Demand deposits in banks

Postdated checks received from customers

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Verified step by step guidance

Understand the definition of 'cash' in accounting: Cash includes items that are readily available for use in transactions, such as coins, currency, money orders, and demand deposits in banks. These are liquid assets that can be used immediately.

Review the concept of postdated checks: A postdated check is a check written with a future date. It cannot be cashed or deposited until the date specified on the check arrives, making it not immediately available for use.

Compare postdated checks to other items listed: Money orders, coins and currency, and demand deposits are all considered cash because they are immediately accessible for transactions. Postdated checks, however, are not accessible until the future date specified.

Determine why postdated checks are excluded: Since postdated checks cannot be used immediately, they do not meet the criteria for being classified as cash. Instead, they are typically recorded as accounts receivable or another category until they become valid.

Conclude that postdated checks should NOT be considered cash: Based on the definition and characteristics of cash in accounting, postdated checks are excluded from the cash category because they are not liquid or readily available for use.