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 best describes a characteristic of a fixed asset?

Easily converted to cash within one year

Recorded as an expense when purchased

Held for immediate resale to customers

Intended for long-term use in the operations of a business

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Verified step by step guidance

Understand the definition of a fixed asset: Fixed assets are tangible assets that are intended for long-term use in the operations of a business and are not easily converted to cash within one year.

Eliminate incorrect options: Review each option provided and compare it to the definition of a fixed asset. For example, 'Easily converted to cash within one year' describes a current asset, not a fixed asset.

Analyze the second option: 'Recorded as an expense when purchased' is incorrect because fixed assets are capitalized and recorded as assets, not expenses, when purchased.

Evaluate the third option: 'Held for immediate resale to customers' describes inventory, not fixed assets, as fixed assets are used in operations rather than sold directly.

Confirm the correct answer: 'Intended for long-term use in the operations of a business' aligns with the definition of a fixed asset, making it the correct choice.