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 lists contains only items that are classified as cash or cash equivalents?

Certificates of deposit (with maturity over 1 year), Land, Equipment

Accounts receivable, Inventory, Prepaid expenses

Currency, Treasury bills, Money market funds

Marketable securities (held for long-term investment), Patents, Goodwill

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Verified step by step guidance

Understand the definition of cash and cash equivalents: Cash includes physical currency and demand deposits, while cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.

Review the items in the provided lists and compare them to the definition of cash and cash equivalents. For example, certificates of deposit with maturity over 1 year do not qualify as cash equivalents because their maturity exceeds three months.

Analyze why certain items do not qualify as cash or cash equivalents. For instance, land, equipment, accounts receivable, inventory, prepaid expenses, marketable securities held for long-term investment, patents, and goodwill are not liquid assets or investments with short-term maturity.

Identify the correct list that matches the definition of cash and cash equivalents. Currency, Treasury bills, and money market funds are all examples of cash or cash equivalents because they are liquid and have short-term maturity.

Conclude that the correct answer is the list containing Currency, Treasury bills, and Money market funds, as these items meet the criteria for classification as cash or cash equivalents.