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 report would best help a company analyze available options for decision-making, and how should it be organized?

A financial accounting report, organized according to Generally Accepted Accounting Principles (GAAP).

A tax accounting report, organized by taxable income and deductions.

An audit report, organized by compliance with internal controls.

A managerial accounting report, organized by relevant costs and benefits for each alternative.

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Verified step by step guidance

Understand the purpose of the question: The goal is to identify the type of accounting report that helps a company analyze options for decision-making. This requires knowledge of different types of accounting reports and their uses.

Review the characteristics of each type of accounting report mentioned: Financial accounting reports focus on external reporting and are organized according to GAAP. Tax accounting reports are designed for tax compliance and focus on taxable income and deductions. Audit reports assess compliance with internal controls. Managerial accounting reports are tailored for internal decision-making and focus on relevant costs and benefits.

Define 'relevant costs and benefits': Relevant costs are those that will be directly affected by a decision, such as variable costs or opportunity costs. Relevant benefits are the potential gains or advantages from a decision. Managerial accounting reports emphasize these factors to aid in decision-making.

Explain why managerial accounting reports are the best fit: Managerial accounting reports are specifically designed to provide information that supports internal decision-making. They focus on comparing alternatives by analyzing relevant costs and benefits, which is essential for evaluating options.

Organize the managerial accounting report: To make it effective, the report should clearly outline each alternative, list the relevant costs and benefits associated with each option, and provide a comparison to help decision-makers choose the best course of action.