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 type of accounting is most appropriate for a financial services company that deals with insurance, investments, and mortgages?

Cost accounting

Tax accounting

Financial accounting

Managerial accounting

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Verified step by step guidance

Understand the nature of the financial services company: It deals with insurance, investments, and mortgages, which are external-facing activities requiring compliance with regulations and reporting to external stakeholders.

Review the purpose of financial accounting: Financial accounting focuses on preparing financial statements (e.g., income statement, balance sheet, cash flow statement) for external users such as investors, creditors, and regulatory agencies.

Compare financial accounting with other types of accounting: Cost accounting is used for internal cost management, tax accounting focuses on tax compliance, and managerial accounting aids internal decision-making. These are not primarily designed for external reporting.

Identify why financial accounting is most appropriate: Financial services companies need to provide transparent and standardized financial information to external parties, which is the primary function of financial accounting.

Conclude that financial accounting is the correct choice for a financial services company, as it ensures compliance with external reporting requirements and provides accurate financial information to stakeholders.