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

Which of the following is a primary reason why financial planners use financial planning models?

To record daily business transactions

To calculate payroll taxes for employees

To prepare tax returns for government agencies

To forecast future financial performance and assist in decision-making

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Verified step by step guidance

Understand the purpose of financial planning models: Financial planning models are tools used to project a company's future financial performance based on various assumptions and scenarios.

Recognize that financial planning models are not designed for routine tasks like recording daily transactions, calculating payroll taxes, or preparing tax returns. These tasks are typically handled by accounting systems or payroll software.

Identify the primary purpose of financial planning models: They are used to forecast future financial performance, such as revenue, expenses, and cash flows, and to assist management in making informed decisions.

Consider how financial planning models help in decision-making: By simulating different scenarios, these models allow businesses to evaluate the potential outcomes of strategic decisions, such as investments, cost-cutting measures, or expansion plans.

Conclude that the correct answer is 'To forecast future financial performance and assist in decision-making,' as this aligns with the primary purpose of financial planning models.