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 type of accounting focuses on reporting a stated amount of income or assets, rather than estimating values?

Managerial accounting

Cost accounting

Tax accounting

Financial accounting

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Verified step by step guidance

Step 1: Understand the different types of accounting mentioned in the problem. Managerial accounting focuses on internal decision-making and often uses estimates to project future outcomes. Cost accounting deals with analyzing costs for production and operations, which may involve estimations. Tax accounting focuses on compliance with tax laws and regulations, which can involve both stated amounts and estimations.

Step 2: Recognize the unique characteristic of financial accounting. Financial accounting is primarily concerned with preparing financial statements (e.g., income statement, balance sheet, cash flow statement) that report actual, stated amounts of income, assets, liabilities, and equity.

Step 3: Note that financial accounting adheres to standardized principles, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), which require reporting actual amounts rather than estimates.

Step 4: Compare the focus of financial accounting with the other types of accounting listed. Financial accounting emphasizes accuracy and reliability in reporting financial information to external stakeholders, such as investors, creditors, and regulatory agencies.

Step 5: Conclude that financial accounting is the type of accounting that focuses on reporting stated amounts of income or assets, rather than estimating values, as it is designed to provide a clear and accurate picture of an organization's financial position.