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

Who is responsible for deciding which inventory accounting method (such as FIFO, LIFO, or weighted average) a company should use?

The Internal Revenue Service (IRS)

The Financial Accounting Standards Board (FASB)

The company's external auditors

The company's management

Previous problemNext problem

Verified step by step guidance

Understand the concept of inventory accounting methods: Inventory accounting methods like FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average are techniques used to value inventory and cost of goods sold. Each method has implications for financial reporting and tax purposes.

Recognize the role of management: The company's management is responsible for selecting the inventory accounting method that aligns with the company's financial strategy, operational needs, and compliance with accounting standards.

Consider regulatory guidelines: While management decides the method, they must ensure it complies with Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), depending on the jurisdiction.

Understand the role of external parties: External auditors review the financial statements to ensure the chosen inventory method is applied consistently and accurately, but they do not decide the method. Similarly, the IRS provides tax regulations but does not dictate the inventory method choice.

Conclude the decision-making process: The company's management evaluates the financial impact, operational feasibility, and compliance requirements before deciding on the inventory accounting method to use.