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 classified as a current asset?

Land

Equipment

Accounts Receivable

Goodwill

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Verified step by step guidance

Understand the definition of a current asset: Current assets are assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.

Review the options provided: Land, Equipment, Accounts Receivable, and Goodwill.

Analyze each option: Land and Equipment are classified as non-current assets because they are long-term investments used in operations and not expected to be converted into cash within one year. Goodwill is an intangible asset and also considered non-current.

Focus on Accounts Receivable: Accounts Receivable represents amounts owed to the business by customers for goods or services provided on credit. These are typically expected to be collected within one year, making them a current asset.

Conclude that Accounts Receivable is the correct classification as a current asset based on its nature and expected conversion to cash within the short term.