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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Struggling with Financial Accounting?

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Multiple Choice

Which of the following statements about financial accounting is TRUE?

Financial accounting primarily provides information to external users such as investors and creditors.

Financial accounting reports are prepared only when requested by management.

Financial accounting is not governed by any standardized principles or regulations.

Financial accounting focuses on detailed internal reports for management decision-making.

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Verified step by step guidance

Step 1: Understand the purpose of financial accounting. Financial accounting is designed to provide information about a company's financial performance and position to external users, such as investors, creditors, and regulatory agencies.

Step 2: Evaluate the first statement: 'Financial accounting primarily provides information to external users such as investors and creditors.' This aligns with the purpose of financial accounting, as its primary focus is external reporting.

Step 3: Evaluate the second statement: 'Financial accounting reports are prepared only when requested by management.' This is incorrect because financial accounting reports, such as income statements and balance sheets, are prepared regularly (e.g., quarterly or annually) and are not dependent on management requests.

Step 4: Evaluate the third statement: 'Financial accounting is not governed by any standardized principles or regulations.' This is incorrect because financial accounting is governed by standardized principles, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).

Step 5: Evaluate the fourth statement: 'Financial accounting focuses on detailed internal reports for management decision-making.' This is incorrect because detailed internal reports for management decision-making are the focus of managerial accounting, not financial accounting.