Multiple Choice
Which of the following accounts is classified as a stockholders' equity account?
18
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following types of accounting can be described as involving indirect finance?
A
Managerial accounting
B
Financial accounting
C
Bank accounting (accounting for financial intermediaries)
D
Tax accounting
Verified step by step guidance1
Understand the concept of indirect finance: Indirect finance involves financial intermediaries, such as banks, that facilitate the flow of funds between savers and borrowers without direct interaction.
Review the types of accounting listed in the problem: Managerial accounting, financial accounting, bank accounting, and tax accounting.
Analyze each type of accounting: Managerial accounting focuses on internal decision-making, financial accounting deals with external reporting, and tax accounting involves compliance with tax laws. Bank accounting, however, is directly related to financial intermediaries and their role in indirect finance.
Connect the concept of indirect finance to bank accounting: Since banks act as intermediaries in the financial system, accounting for their activities aligns with the definition of indirect finance.
Conclude that bank accounting is the type of accounting described as involving indirect finance, based on its role in the financial system.
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations