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 the difference between hard money and soft money in accounting?

Hard money represents intangible assets, while soft money represents tangible assets.

Hard money is used only in governmental accounting, while soft money is used in private sector accounting.

Hard money refers to actual cash or cash equivalents, while soft money refers to non-cash forms such as credit or promises to pay.

Hard money is recorded on the balance sheet, while soft money is only recorded in the income statement.

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Verified step by step guidance

Step 1: Understand the concept of 'hard money' in accounting. Hard money refers to actual cash or cash equivalents, such as physical currency, checks, or funds in a bank account. These are tangible and liquid assets that can be readily used for transactions.

Step 2: Understand the concept of 'soft money' in accounting. Soft money refers to non-cash forms such as credit, promises to pay, or other financial instruments that are not immediately liquid but represent future economic benefits.

Step 3: Compare the two concepts. Hard money is tangible and immediately available for use, while soft money is intangible and represents potential future cash flows or obligations.

Step 4: Analyze the options provided in the problem. Evaluate each statement to determine which one accurately describes the difference between hard money and soft money.

Step 5: Identify the correct answer based on the definitions and comparison. The correct answer is: 'Hard money refers to actual cash or cash equivalents, while soft money refers to non-cash forms such as credit or promises to pay.'