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 is characteristic of financial accounting?

It emphasizes future projections rather than historical data.

It focuses on providing information to external users such as investors and creditors.

It is primarily concerned with budgeting and internal decision-making.

It is not governed by generally accepted accounting principles (GAAP).

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Verified step by step guidance

Understand the purpose of financial accounting: Financial accounting is primarily concerned with providing information to external users, such as investors, creditors, and regulatory agencies, to help them make informed decisions.

Recognize the emphasis of financial accounting: Unlike managerial accounting, which focuses on internal decision-making and future projections, financial accounting emphasizes historical data and the accurate reporting of past financial performance.

Identify the governing principles: Financial accounting is governed by generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS), ensuring consistency and comparability across organizations.

Distinguish financial accounting from budgeting: Budgeting and internal decision-making are typically associated with managerial accounting, not financial accounting.

Conclude the characteristic: Based on the above points, the correct characteristic of financial accounting is its focus on providing information to external users such as investors and creditors.