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 are the two major forms of long-term debt commonly reported in financial accounting?

Common stock and preferred stock

Inventory and prepaid expenses

Bonds payable and notes payable

Accounts payable and accrued expenses

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Verified step by step guidance

Understand the concept of long-term debt: Long-term debt refers to financial obligations that are due more than one year in the future. It is a liability on the balance sheet and typically includes instruments used to finance large projects or operations.

Review the options provided: Analyze each option to determine whether it represents long-term debt. Common stock and preferred stock are equity accounts, not debt. Inventory and prepaid expenses are assets, not liabilities. Accounts payable and accrued expenses are current liabilities, not long-term debt.

Identify the correct answer: Bonds payable and notes payable are the two major forms of long-term debt. Bonds payable represent debt securities issued by a company to investors, while notes payable are written promises to pay a specific amount of money at a future date.

Understand why bonds payable and notes payable qualify as long-term debt: Bonds payable typically have maturity dates extending beyond one year, and notes payable can also have long-term terms depending on the agreement. Both are classified as liabilities on the balance sheet.

Conclude the analysis: The correct answer is 'Bonds payable and notes payable' because they are the two major forms of long-term debt commonly reported in financial accounting.