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

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

Which of the following best describes an important function of financial accounting?

To set the prices of goods and services sold by the company.

To manage the day-to-day operations of a business.

To provide information that is useful for making investment and credit decisions.

To determine the market value of a company's shares.

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Verified step by step guidance

Step 1: Understand the purpose of financial accounting. Financial accounting is primarily concerned with providing accurate and reliable information about a company's financial performance and position to external users such as investors, creditors, and regulatory agencies.

Step 2: Evaluate the options provided in the question. Each option represents a potential function of financial accounting, but only one aligns with its primary purpose.

Step 3: Eliminate options that do not align with the primary purpose of financial accounting. For example, setting prices of goods and services and managing day-to-day operations are functions of managerial accounting, not financial accounting.

Step 4: Consider the correct answer: 'To provide information that is useful for making investment and credit decisions.' This aligns with the primary goal of financial accounting, which is to help external users make informed decisions based on financial reports.

Step 5: Confirm that the other options, such as determining the market value of a company's shares, are not directly related to the core function of financial accounting. Market value is determined by external factors like stock market performance, not by financial accounting itself.