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 is considered both a short-term and a long-term investment in accounting?

Prepaid expenses

Accounts receivable

Inventory

Marketable securities

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Verified step by step guidance

Understand the concept of short-term and long-term investments in accounting. Short-term investments are assets that are expected to be converted into cash within one year, while long-term investments are held for more than one year and are intended for strategic purposes or future growth.

Review the characteristics of marketable securities. Marketable securities are liquid financial instruments that can be quickly converted into cash, such as stocks, bonds, or other investments. They are considered short-term investments when they are intended to be sold within a year and long-term investments when held for a longer period.

Compare marketable securities to the other options provided: Prepaid expenses, accounts receivable, and inventory. Prepaid expenses are payments made in advance for goods or services and are not considered investments. Accounts receivable represent amounts owed to the company and are classified as current assets. Inventory consists of goods available for sale and is also classified as a current asset.

Recognize that marketable securities are unique because they can be classified as both short-term and long-term investments depending on the company's intent and the holding period. This dual classification is based on the liquidity and purpose of the investment.

Conclude that marketable securities are the correct answer because they meet the criteria for both short-term and long-term investments in accounting, unlike the other options provided.