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 types of accounting would most likely limit a company's liability to provide insurance coverage?

Fund accounting

Managerial accounting

Financial accounting

Governmental accounting

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Verified step by step guidance

Understand the context of the question: The problem is asking which type of accounting is most likely to limit a company's liability to provide insurance coverage. This requires knowledge of different accounting types and their purposes.

Review the definitions of the accounting types mentioned: Fund accounting is used by non-profit organizations to track resources for specific purposes. Managerial accounting focuses on internal decision-making within a company. Financial accounting involves preparing financial statements for external stakeholders. Governmental accounting is used by government entities to manage public funds and ensure compliance with regulations.

Analyze the relationship between governmental accounting and liability: Governmental accounting is designed to ensure transparency and compliance with laws and regulations. It often includes provisions that limit liability, such as specific rules for insurance coverage and risk management.

Consider the unique characteristics of governmental accounting: Governmental entities operate under strict legal frameworks that often include limitations on liability, which can extend to areas like insurance coverage. This is distinct from other types of accounting, which may not directly address liability limitations.

Conclude that governmental accounting is the correct answer: Based on the analysis, governmental accounting is most likely to limit a company's liability to provide insurance coverage due to its focus on compliance and legal frameworks.