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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Why is credit important in financial accounting?

It is only relevant for managerial accounting and not for financial accounting.

It eliminates the need for debits in the accounting process.

It allows businesses to record transactions that increase liabilities or equity, ensuring accurate double-entry bookkeeping.

It is used only to record cash transactions in the accounting system.

Previous problemNext problem

Verified step by step guidance

Understand the concept of 'credit' in financial accounting: Credit is one side of the double-entry bookkeeping system, which ensures that every transaction is recorded in two accounts—one as a debit and the other as a credit.

Recognize the role of credit in increasing liabilities or equity: In financial accounting, credits are used to record transactions that increase liabilities (e.g., loans payable) or equity (e.g., capital contributions).

Learn why credit is essential for double-entry bookkeeping: Double-entry bookkeeping ensures the accounting equation (Assets = Liabilities + Equity) remains balanced, and credits play a crucial role in this system.

Clarify the misconception about debits and credits: Credits do not eliminate the need for debits; instead, they complement debits to ensure accurate transaction recording.

Understand the scope of credit usage: Credit is not limited to cash transactions; it applies to all types of transactions, including those involving accounts payable, revenue, and equity changes.