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 is primarily concerned with tracking and reporting the financial responsibilities of a parent company for its subsidiaries?

Consolidated accounting

Cost accounting

Tax accounting

Managerial accounting

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Verified step by step guidance

Understand the concept of consolidated accounting: Consolidated accounting is a type of financial accounting that focuses on combining the financial statements of a parent company and its subsidiaries into one unified set of financial statements. This ensures that the financial position and performance of the entire group are reported accurately.

Differentiate consolidated accounting from other types of accounting: Cost accounting deals with tracking and analyzing costs for internal decision-making, tax accounting focuses on compliance with tax laws, and managerial accounting provides information for internal management purposes. Consolidated accounting specifically addresses the financial reporting of parent companies and subsidiaries.

Recognize the purpose of consolidated accounting: It is used to provide a clear picture of the financial health of the entire corporate group, eliminating intercompany transactions and ensuring that the financial statements reflect the true economic activities of the group.

Identify the key processes involved in consolidated accounting: These include combining financial statements, eliminating intercompany transactions, and ensuring compliance with accounting standards such as GAAP or IFRS.

Apply the concept to the question: Since the question asks about tracking and reporting the financial responsibilities of a parent company for its subsidiaries, the correct answer is consolidated accounting, as it directly addresses this need.