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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

The primary objective of financial accounting is to:

Determine the market value of a company's assets

Ensure compliance with tax regulations

Provide useful financial information to external users for decision making

Assist management in planning and controlling business operations

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Verified step by step guidance

Understand the primary objective of financial accounting: Financial accounting is focused on providing accurate and relevant financial information to external users, such as investors, creditors, and regulatory agencies, to aid in their decision-making processes.

Differentiate financial accounting from other accounting types: Unlike managerial accounting, which assists management in planning and controlling operations, financial accounting is primarily concerned with external reporting.

Recognize the role of financial statements: Financial accounting achieves its objective by preparing financial statements, including the income statement, balance sheet, and cash flow statement, which summarize a company's financial performance and position.

Identify external users: External users include investors, creditors, analysts, and regulatory bodies who rely on financial accounting information to evaluate the company's financial health and make informed decisions.

Clarify misconceptions: Financial accounting does not aim to determine the market value of assets or ensure compliance with tax regulations directly; these are secondary considerations or objectives of other specialized fields like tax accounting or valuation.