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 types of accounting measures a company's ability to protect its long-term creditors?

Tax accounting

Financial accounting

Managerial accounting

Cost accounting

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Verified step by step guidance

Understand the purpose of each type of accounting mentioned in the problem: Tax accounting focuses on compliance with tax laws, Managerial accounting aids internal decision-making, Cost accounting analyzes costs for efficiency, and Financial accounting provides information to external stakeholders like creditors and investors.

Recognize that long-term creditors are external stakeholders who are interested in the company's financial health and ability to meet obligations over time.

Identify that Financial accounting is designed to measure and report a company's financial position, performance, and cash flows, which are critical for assessing its ability to protect long-term creditors.

Note that financial statements such as the balance sheet, income statement, and cash flow statement are key outputs of Financial accounting and are used by creditors to evaluate the company's solvency and liquidity.

Conclude that Financial accounting is the correct type of accounting for measuring a company's ability to protect its long-term creditors, as it provides the necessary external financial information.