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 a type of accounting primarily concerned with providing information to external users such as investors and creditors?

Financial accounting

Cost accounting

Managerial accounting

Tax 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 information to external users such as investors and creditors, while cost accounting, managerial accounting, and tax accounting serve different purposes.

Recognize that external users rely on standardized financial statements prepared under generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS). This is a key characteristic of financial accounting.

Differentiate between the other types of accounting: Cost accounting deals with analyzing costs for internal decision-making, managerial accounting focuses on internal management needs, and tax accounting is concerned with compliance with tax laws.

Identify that the question specifically asks about external users, which is the domain of financial accounting. This is the primary distinction that sets financial accounting apart from the other types.

Conclude that the correct answer is 'Financial accounting' because it is the type of accounting designed to provide standardized and reliable information to external stakeholders like investors and creditors.