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

If a company wants to change how its employees are compensated, which type of accounting would be most directly involved in analyzing the financial impact of this decision?

Auditing

Tax accounting

Financial accounting

Managerial accounting

Previous problemNext problem

Verified step by step guidance

Understand the context of the problem: The question is asking which type of accounting is most directly involved in analyzing the financial impact of a decision related to employee compensation changes.

Review the definitions of the accounting types mentioned: Auditing focuses on verifying the accuracy of financial records, Tax accounting deals with compliance and tax-related matters, Financial accounting involves preparing financial statements for external stakeholders, and Managerial accounting focuses on internal decision-making and operational analysis.

Identify the key aspect of the problem: The financial impact of changing employee compensation is an internal decision that requires analysis of costs, benefits, and operational implications, which falls under the scope of Managerial accounting.

Explain why Managerial accounting is the correct answer: Managerial accounting provides tools and techniques for analyzing internal financial data to support decision-making, such as budgeting, cost analysis, and forecasting, which are essential for evaluating changes in employee compensation.

Conclude the reasoning: Since the decision involves internal analysis and planning rather than external reporting or compliance, Managerial accounting is the type of accounting most directly involved in this scenario.