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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Struggling with Financial Accounting?

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Multiple Choice

Which definition below best describes financial accounting?

The process of recording, summarizing, and reporting a company's financial transactions to external users such as investors and regulators.

The practice of analyzing and interpreting financial data to assist internal management in decision-making.

The preparation of tax returns and planning for future tax obligations.

The process of auditing a company's internal controls and compliance with laws and regulations.

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Verified step by step guidance

Step 1: Understand the concept of financial accounting. Financial accounting is primarily concerned with recording, summarizing, and reporting a company's financial transactions to external users such as investors, creditors, and regulators.

Step 2: Differentiate financial accounting from other accounting practices. For example, managerial accounting focuses on internal decision-making, tax accounting deals with tax returns and planning, and auditing involves evaluating internal controls and compliance.

Step 3: Analyze the options provided in the question. Identify which option aligns with the definition of financial accounting, emphasizing external reporting of financial transactions.

Step 4: Eliminate options that describe other accounting practices, such as managerial accounting, tax accounting, or auditing, as they do not match the definition of financial accounting.

Step 5: Select the option that accurately describes financial accounting as the process of recording, summarizing, and reporting a company's financial transactions to external users.