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

Checkable deposits are classified as money because:

They can be readily used to make payments and are accepted as a medium of exchange.

They are only used for recording business transactions.

They represent long-term investments held by banks.

They are considered a form of physical currency.

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Verified step by step guidance

Understand the concept of checkable deposits: Checkable deposits are funds held in bank accounts that can be accessed on demand using checks, debit cards, or electronic transfers. They are considered part of the money supply because they are liquid and can be readily used for transactions.

Analyze the characteristics of money: Money serves as a medium of exchange, a unit of account, and a store of value. Checkable deposits fulfill the role of a medium of exchange because they are widely accepted for payments.

Evaluate the options provided in the problem: Review each option to determine which aligns with the definition and characteristics of checkable deposits as money.

Eliminate incorrect options: For example, checkable deposits are not only used for recording business transactions, they are not long-term investments, and they are not physical currency. These characteristics do not align with the definition of checkable deposits as money.

Select the correct answer: The correct answer is that checkable deposits are classified as money because they can be readily used to make payments and are accepted as a medium of exchange. This aligns with the liquidity and functionality of checkable deposits in the economy.