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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Most credit cards will charge you an annual fee. Which type of accounting would typically record and report such fees for a business?

Cost accounting

Managerial accounting

Financial accounting

Tax accounting

Previous problemNext problem

Verified step by step guidance

Understand the nature of the transaction: An annual fee charged by a credit card company is a cost incurred by the business for using the credit card service. This fee is typically recorded as an expense in the business's financial records.

Identify the type of accounting that deals with recording and reporting such expenses: Financial accounting is responsible for preparing financial statements that reflect the business's financial position, including expenses like annual fees.

Differentiate between the types of accounting mentioned: Cost accounting focuses on analyzing costs related to production, managerial accounting aids in internal decision-making, and tax accounting deals with tax-related matters. Financial accounting, however, is concerned with external reporting of financial transactions, including expenses like annual fees.

Recognize the purpose of financial accounting: Financial accounting ensures that all expenses, revenues, assets, and liabilities are accurately recorded and reported in compliance with accounting standards, making it the correct type of accounting for recording annual fees.

Conclude that the correct answer is Financial accounting, as it is the branch of accounting responsible for recording and reporting such fees in the financial statements of the business.