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 primarily deals with the preparation of financial statements for external users and the calculation of taxes owed by individuals or businesses?

Financial Accounting

Tax Accounting

Managerial Accounting

Cost Accounting

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Verified step by step guidance

Step 1: Understand the different types of accounting mentioned in the problem. Financial Accounting focuses on preparing financial statements for external users such as investors, creditors, and regulatory agencies. Tax Accounting deals with the calculation of taxes owed by individuals or businesses and compliance with tax laws. Managerial Accounting is used for internal decision-making and planning within an organization. Cost Accounting focuses on analyzing and controlling costs within a business.

Step 2: Identify the key requirement of the question, which is to determine the type of accounting that deals with both the preparation of financial statements for external users and the calculation of taxes owed.

Step 3: Analyze the descriptions of each type of accounting provided in Step 1. Financial Accounting is primarily concerned with external reporting, while Tax Accounting is focused on tax calculations and compliance. Managerial Accounting and Cost Accounting are more internally focused and do not deal with external financial statements or tax calculations.

Step 4: Match the requirements of the question to the correct type of accounting. Since the question specifies preparation of financial statements for external users, Financial Accounting is the correct match. Tax Accounting is specifically for tax-related matters, which is not the focus of the question.

Step 5: Conclude that the correct answer is Financial Accounting, as it aligns with the preparation of financial statements for external users, which is the primary focus of the question.