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

The temporary nature of financial accounting provides organizations with all of the following except:

A permanent record of financial transactions

Information for external stakeholders

A basis for tax reporting

Periodic financial statements

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Verified step by step guidance

Understand the concept of 'temporary nature' in financial accounting. Temporary nature refers to the periodic reporting of financial information, typically on a monthly, quarterly, or annual basis, rather than maintaining a permanent record of all transactions.

Review the purpose of financial accounting. It is designed to provide information to external stakeholders, such as investors, creditors, and regulatory agencies, and to support tax reporting and compliance.

Analyze the options provided in the question. The correct answer should be the one that does not align with the temporary nature of financial accounting.

Evaluate each option: 'Information for external stakeholders' aligns with financial accounting as it provides periodic reports for decision-making. 'A basis for tax reporting' is also consistent, as financial accounting supports tax filings. 'Periodic financial statements' are a core feature of financial accounting.

Identify the exception: 'A permanent record of financial transactions' does not align with the temporary nature of financial accounting, as financial accounting focuses on periodic reporting rather than maintaining a permanent record.