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

Which type of accounting does a business usually need to provide to secure a bank loan to fund its operations?

Cost accounting

Tax accounting

Managerial accounting

Financial accounting

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Verified step by step guidance

Understand the purpose of financial accounting: Financial accounting focuses on providing accurate and standardized financial information about a business's performance and position to external parties, such as investors, creditors, and banks.

Recognize the requirements of banks for loan approval: Banks typically require financial statements prepared under financial accounting standards, such as the balance sheet, income statement, and cash flow statement, to assess the financial health and creditworthiness of a business.

Differentiate financial accounting from other types of accounting: Cost accounting is used internally to analyze costs, tax accounting focuses on compliance with tax laws, and managerial accounting aids internal decision-making. Financial accounting, however, is specifically designed for external reporting.

Understand why financial accounting is essential for securing a loan: Financial accounting provides transparency and reliability, which are critical for banks to evaluate the risk and feasibility of lending money to a business.

Conclude that financial accounting is the correct type of accounting needed to secure a bank loan, as it provides the necessary financial reports and data required by external parties like banks.