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 of the following types of accounting primarily consists of offering financial information to external users such as investors and creditors?

Financial Accounting

Cost Accounting

Tax Accounting

Managerial Accounting

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Verified step by step guidance

Understand the purpose of each type of accounting mentioned in the problem. Financial Accounting focuses on providing financial information to external users such as investors and creditors. Cost Accounting deals with analyzing costs within a company. Tax Accounting focuses on compliance with tax laws and regulations. Managerial Accounting provides information for internal decision-making.

Identify the key characteristic of Financial Accounting: it is designed to communicate financial performance and position to external stakeholders, such as investors, creditors, and regulatory agencies.

Compare the purpose of Financial Accounting with the other types of accounting listed. Note that Cost Accounting, Tax Accounting, and Managerial Accounting primarily serve internal purposes or compliance needs rather than external reporting.

Recognize that the question specifically asks about accounting that provides information to external users. This aligns directly with the purpose of Financial Accounting.

Conclude that Financial Accounting is the correct answer based on its primary role of offering financial information to external users, as opposed to the other types of accounting listed.