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 is primarily used by business customers to evaluate a company's financial performance and make informed decisions?

Governmental Accounting

Financial Accounting

Tax Accounting

Cost Accounting

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Verified step by step guidance

Step 1: Understand the purpose of each type of accounting listed in the options. Financial Accounting focuses on providing financial information to external users such as investors, creditors, and business customers. Governmental Accounting deals with the financial management of government entities. Tax Accounting focuses on compliance with tax laws and regulations. Cost Accounting is used internally to analyze costs and improve efficiency.

Step 2: Recognize that business customers are external users of financial information. They rely on standardized financial statements to evaluate a company's financial performance and make informed decisions.

Step 3: Recall that Financial Accounting is designed to provide accurate, standardized, and comparable financial information through reports such as the income statement, balance sheet, and cash flow statement.

Step 4: Eliminate the other options based on their primary focus. Governmental Accounting is specific to government entities, Tax Accounting is focused on tax compliance, and Cost Accounting is used internally rather than by external business customers.

Step 5: Conclude that the correct type of accounting used by business customers to evaluate a company's financial performance and make informed decisions is Financial Accounting.