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 is NOT a type of inventory commonly recognized in accounting?

Work-in-process

Raw materials

Accounts receivable

Finished goods

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Verified step by step guidance

Understand the concept of inventory in accounting: Inventory refers to assets that are intended for sale, production, or use in manufacturing processes. Common types of inventory include raw materials, work-in-process, and finished goods.

Define each type of inventory: Raw materials are the basic inputs used in production. Work-in-process refers to partially completed goods still undergoing production. Finished goods are completed products ready for sale.

Recognize that accounts receivable is not inventory: Accounts receivable represents money owed to the company by customers for goods or services already delivered. It is classified as a current asset but not as inventory.

Compare accounts receivable to inventory: Inventory is tangible and directly related to production or sales, while accounts receivable is intangible and represents a financial claim.

Conclude that accounts receivable is NOT a type of inventory commonly recognized in accounting, as it does not fit the definition or purpose of inventory.