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 usually is not classified as a long-term asset?

Buildings

Equipment

Inventory

Land

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Verified step by step guidance

Step 1: Understand the classification of assets. Assets are typically divided into two categories: current assets and long-term assets. Current assets are expected to be converted into cash, sold, or consumed within one year, while long-term assets are held for longer periods and are used in the operations of the business.

Step 2: Review the examples of long-term assets. Long-term assets include items such as buildings, equipment, and land. These are tangible assets that are used in the production or operation of the business and are not intended for immediate sale.

Step 3: Examine the nature of inventory. Inventory is classified as a current asset because it consists of goods that are intended for sale in the normal course of business within a short period, typically within one year.

Step 4: Compare inventory with the other options provided (buildings, equipment, and land). Buildings, equipment, and land are all long-term assets because they are used in the business over an extended period and are not intended for immediate sale.

Step 5: Conclude that inventory is usually not classified as a long-term asset because it is a current asset, intended for sale or consumption within one year.