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 an advantage of financial accounting compared to managerial accounting?

It provides standardized information useful for external stakeholders.

It focuses primarily on future projections and internal decision-making.

It is not subject to any regulatory standards or guidelines.

It is designed exclusively for use by company management.

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Verified step by step guidance

Understand the distinction between financial accounting and managerial accounting. Financial accounting is primarily concerned with providing standardized financial information to external stakeholders, such as investors, creditors, and regulatory agencies. Managerial accounting, on the other hand, focuses on internal decision-making and future projections.

Recognize that financial accounting adheres to regulatory standards and guidelines, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), ensuring consistency and comparability of financial statements.

Identify that managerial accounting is not subject to regulatory standards and is tailored to meet the specific needs of company management for internal purposes.

Note that financial accounting is designed to provide historical financial data, which is useful for external stakeholders to assess the financial health and performance of a company.

Conclude that the advantage of financial accounting compared to managerial accounting is its ability to provide standardized information useful for external stakeholders, as opposed to focusing on future projections or internal decision-making.