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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

The primary objective of financial accounting is to:

Assist management in planning and controlling business operations

Provide useful financial information to external users for decision making

Ensure compliance with internal company policies

Calculate income tax owed to the government

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Verified step by step guidance

Understand the primary objective of financial accounting: Financial accounting focuses on providing accurate and reliable financial information to external users, such as investors, creditors, and regulatory agencies, to aid in their decision-making processes.

Differentiate financial accounting from managerial accounting: Managerial accounting is designed to assist management in planning and controlling business operations, whereas financial accounting is aimed at external users.

Recognize the role of financial accounting in compliance: While financial accounting ensures compliance with external regulations and standards (e.g., GAAP or IFRS), it does not focus on internal company policies.

Clarify the relationship between financial accounting and taxation: Financial accounting provides the basis for calculating taxable income, but its primary goal is not to calculate income tax owed to the government.

Conclude that the correct answer aligns with the primary objective: The main purpose of financial accounting is to provide useful financial information to external users for decision-making, distinguishing it from other accounting functions.