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

Garden Depot is a retailer that is preparing its financial statements for external users. Which type of accounting is primarily being used in this process?

Financial accounting

Cost accounting

Tax accounting

Managerial accounting

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Verified step by step guidance

Understand the purpose of the financial statements: Financial accounting is primarily concerned with preparing financial statements for external users, such as investors, creditors, and regulatory agencies. This distinguishes it from other types of accounting.

Review the definitions of the accounting types: Financial accounting focuses on external reporting, cost accounting deals with cost analysis for internal decision-making, tax accounting focuses on compliance with tax laws, and managerial accounting supports internal management decisions.

Identify the audience for the financial statements: Since the financial statements are being prepared for external users, this aligns with the purpose of financial accounting.

Eliminate other options: Cost accounting, tax accounting, and managerial accounting are primarily used for internal purposes or compliance, not for external reporting.

Conclude that the correct type of accounting being used in this process is financial accounting, as it matches the purpose of preparing financial statements for external users.