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

One of the primary functions of financial institutions in an economy is to —

enforce accounting standards

prepare tax returns for individuals

facilitate the flow of funds between savers and borrowers

set government fiscal policy

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Verified step by step guidance

Understand the role of financial institutions in an economy. Financial institutions act as intermediaries to facilitate the flow of funds between savers (those who have excess funds) and borrowers (those who need funds).

Recognize that financial institutions do not enforce accounting standards. This is typically the role of regulatory bodies such as the Financial Accounting Standards Board (FASB) or International Accounting Standards Board (IASB).

Note that financial institutions do not prepare tax returns for individuals. This is usually done by tax professionals or individuals themselves using tax software.

Understand that financial institutions do not set government fiscal policy. Fiscal policy is determined by government entities, such as the Treasury Department or Congress, depending on the country.

Conclude that the primary function of financial institutions is to facilitate the flow of funds between savers and borrowers, ensuring efficient allocation of resources in the economy.