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

Tom has a qualified retirement plan. Under which type of accounting would the contributions to this plan most likely be recorded and reported?

Managerial accounting

Tax accounting

Financial accounting

Cost accounting

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Verified step by step guidance

Understand the context of the problem: Tom has a qualified retirement plan, and the question is asking under which type of accounting the contributions to this plan would be recorded and reported.

Review the definitions of the accounting types mentioned: Managerial accounting focuses on internal decision-making, Tax accounting deals with compliance with tax laws, Cost accounting analyzes costs for production and operations, and Financial accounting involves recording, summarizing, and reporting financial transactions for external stakeholders.

Identify the nature of the contributions to the retirement plan: Contributions to a qualified retirement plan are financial transactions that need to be recorded and reported for external purposes, such as compliance with regulations and providing information to stakeholders.

Match the nature of the transaction to the appropriate accounting type: Since the contributions are financial transactions that need to be reported externally, they fall under Financial accounting.

Conclude that Financial accounting is the correct type for recording and reporting contributions to Tom's qualified retirement plan, as it aligns with the purpose of external reporting and compliance.