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

Why don't all companies use the same managerial accounting systems?

Because managerial accounting systems are tailored to meet the specific needs and objectives of each company.

Because managerial accounting systems are only used by non-profit organizations.

Because all companies are required to use only financial accounting systems.

Because managerial accounting is regulated by government standards that require different systems for each industry.

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Verified step by step guidance

Understand the purpose of managerial accounting: Managerial accounting systems are designed to provide internal information to help managers make decisions, plan, and control operations. Unlike financial accounting, which is standardized and regulated, managerial accounting is flexible and tailored to the company's needs.

Recognize the diversity of business operations: Companies operate in different industries, have unique goals, and face distinct challenges. Managerial accounting systems are customized to address these specific factors, ensuring that the information provided is relevant and actionable for decision-making.

Consider the lack of regulation: Managerial accounting is not governed by external standards like Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). This allows companies to design systems that best suit their internal requirements without adhering to a universal format.

Evaluate the role of company objectives: Each company has its own strategic objectives, such as cost reduction, efficiency improvement, or market expansion. Managerial accounting systems are developed to align with these objectives and provide insights that support achieving them.

Dismiss incorrect options: Managerial accounting is not limited to non-profit organizations, nor is it regulated by government standards requiring different systems for each industry. Additionally, companies are not required to use only financial accounting systems; managerial accounting complements financial accounting by focusing on internal decision-making.