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

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

Which statement best describes some of the components of internally held debt?

Internally held debt consists only of loans from external banks and financial institutions.

Internally held debt refers exclusively to accounts payable to third-party suppliers.

Internally held debt includes obligations owed to subsidiaries or divisions within the same company.

Internally held debt is recorded as an asset on the balance sheet.

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Verified step by step guidance

Understand the concept of internally held debt: Internally held debt refers to obligations owed within the same company, such as between subsidiaries or divisions. It is not limited to external loans or accounts payable to third-party suppliers.

Clarify why internally held debt is not recorded as an asset: Debt represents a liability, not an asset, because it reflects amounts owed rather than owned.

Compare internally held debt to external debt: External debt involves obligations to outside entities like banks or suppliers, whereas internally held debt is confined within the organization.

Identify the correct description: Internally held debt includes obligations owed to subsidiaries or divisions within the same company, as this aligns with the definition of internal transactions.

Review the incorrect options: Eliminate statements that describe external debt or misclassify debt as an asset, ensuring a clear understanding of the correct concept.