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 items are classified as plant assets?

Machinery used in production

Prepaid insurance

Inventory held for resale

Accounts receivable

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Understand the definition of plant assets: Plant assets are tangible, long-term assets used in the operations of a business to produce goods or services. They are not intended for resale and typically include items like machinery, buildings, and equipment.

Analyze each item in the list to determine if it meets the criteria for plant assets: Tangible, long-term, and used in operations.

Evaluate 'Machinery used in production': This item is tangible, long-term, and directly used in the operations of the business to produce goods. It qualifies as a plant asset.

Evaluate 'Prepaid insurance': This is an intangible asset and represents a prepayment for future expenses. It does not meet the criteria for plant assets.

Evaluate 'Inventory held for resale' and 'Accounts receivable': Inventory is intended for resale, and accounts receivable represent amounts owed to the business. Neither are tangible, long-term assets used in operations, so they do not qualify as plant assets.