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 statement is accurate regarding the purpose of financial accounting?

Financial accounting is only concerned with tax reporting to government authorities.

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

Financial accounting is mainly used for internal decision-making by management.

Financial accounting focuses on tracking the cost of production for internal analysis.

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Verified step by step guidance

Understand the purpose of financial accounting: Financial accounting is primarily concerned with providing information to external users, such as investors, creditors, and regulatory agencies, to help them make informed decisions.

Differentiate financial accounting from managerial accounting: Managerial accounting focuses on internal decision-making and tracking costs for production, while financial accounting is geared toward external reporting.

Clarify the misconception about tax reporting: While financial accounting may include information used for tax reporting, its primary purpose is broader and involves preparing financial statements for external stakeholders.

Identify the key outputs of financial accounting: These include the balance sheet, income statement, and cash flow statement, which provide a comprehensive view of a company's financial health to external users.

Conclude that the correct statement is: Financial accounting provides information primarily for external users such as investors and creditors, as this aligns with its primary purpose and scope.