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 one of the following statements correctly applies to financial accounting?

Financial accounting does not follow any standardized rules or principles.

Financial accounting reports are typically confidential and used only by management.

Financial accounting is primarily concerned with budgeting and internal decision-making.

Financial accounting focuses on providing information to external users such as investors and creditors.

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Verified step by step guidance

Understand the purpose of financial accounting: Financial accounting is designed to provide standardized and reliable information about a company's financial performance and position to external users such as investors, creditors, and regulatory agencies.

Recognize the standardized rules: Financial accounting follows established principles and standards, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), to ensure consistency and comparability of financial reports.

Differentiate financial accounting from managerial accounting: Financial accounting focuses on external reporting, while managerial accounting is concerned with internal decision-making, budgeting, and operational planning.

Identify the confidentiality aspect: Financial accounting reports are publicly available and not confidential, as they are intended for external stakeholders, unlike managerial accounting reports which are used internally by management.

Conclude the correct statement: Based on the above clarifications, the correct statement is that financial accounting focuses on providing information to external users such as investors and creditors.