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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following tools helps protect individuals from financially devastating events?

Insurance

Depreciation

Accrual accounting

Inventory management

Previous problemNext problem

Verified step by step guidance

Understand the context of the question: The problem is asking which tool helps protect individuals from financially devastating events. This requires identifying the concept that provides financial security or risk mitigation.

Analyze each option: Insurance, Depreciation, Accrual accounting, and Inventory management. Consider their definitions and purposes in financial accounting and personal finance.

Define 'Insurance': Insurance is a financial tool designed to protect individuals or entities from significant financial losses due to unforeseen events, such as accidents, illnesses, or natural disasters. It involves paying premiums to transfer risk to an insurer.

Define the other options: Depreciation refers to the allocation of the cost of a tangible asset over its useful life. Accrual accounting is a method of recording revenues and expenses when they are incurred, regardless of cash flow. Inventory management involves tracking and controlling stock levels to optimize business operations.

Conclude: Based on the definitions, Insurance is the tool that directly addresses the need to protect individuals from financially devastating events, as it mitigates risk and provides financial compensation in adverse situations.