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

Under which type of accounting would the proceeds from a whole life insurance policy, paid out upon the death of the owner-insured at age 80, most likely be recorded and reported for a business entity?

Financial accounting

Cost accounting

Managerial accounting

Tax accounting

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Verified step by step guidance

Understand the context of the question: The proceeds from a whole life insurance policy paid out upon the death of the owner-insured are a financial transaction that impacts the business entity's financial records.

Identify the types of accounting mentioned: Financial accounting, cost accounting, managerial accounting, and tax accounting. Each serves a specific purpose in recording and reporting transactions.

Clarify the purpose of financial accounting: Financial accounting focuses on recording, summarizing, and reporting financial transactions to external stakeholders, such as investors, creditors, and regulatory agencies. It is concerned with the preparation of financial statements.

Evaluate the relevance of other accounting types: Cost accounting deals with internal cost analysis for production and operations, managerial accounting focuses on internal decision-making, and tax accounting is concerned with compliance and reporting for tax purposes.

Conclude that the proceeds from the insurance policy would most likely be recorded and reported under financial accounting, as it involves external reporting of financial transactions impacting the entity's financial position.