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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Struggling with Financial Accounting?

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Multiple Choice

Which of the following best describes financial accounting?

It is primarily concerned with tax planning and compliance with tax laws.

It focuses on preparing financial statements for external users such as investors and creditors.

It deals with auditing the internal controls and processes of an organization.

It involves tracking and analyzing costs for internal management decision-making.

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Verified step by step guidance

Step 1: Understand the scope of financial accounting. Financial accounting is primarily concerned with the preparation of financial statements that provide information about a company's financial performance and position to external users such as investors, creditors, and regulatory agencies.

Step 2: Differentiate financial accounting from other accounting fields. Unlike tax accounting, which focuses on compliance with tax laws, or managerial accounting, which involves tracking and analyzing costs for internal decision-making, financial accounting is externally focused.

Step 3: Recognize the purpose of financial statements. Financial accounting aims to provide standardized and reliable financial information through statements like the income statement, balance sheet, and cash flow statement.

Step 4: Eliminate incorrect options. The option about tax planning and compliance pertains to tax accounting, while auditing internal controls is related to auditing, and tracking costs for decision-making is part of managerial accounting.

Step 5: Select the correct description. Based on the above analysis, the correct answer is: 'It focuses on preparing financial statements for external users such as investors and creditors.'