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 best describes the primary difference in perspective between finance and accounting?

Accounting is only concerned with tax preparation, whereas finance deals exclusively with budgeting.

Accounting focuses on recording and reporting past financial transactions, while finance emphasizes planning and managing future financial resources.

Finance is responsible for auditing financial statements, while accounting manages investment portfolios.

Accounting and finance are identical fields with no significant differences in perspective.

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Verified step by step guidance

Understand the key concepts of accounting and finance: Accounting primarily deals with recording, classifying, and summarizing past financial transactions to prepare financial statements. Finance, on the other hand, focuses on planning, managing, and allocating future financial resources to achieve organizational goals.

Analyze the options provided in the question to identify the correct perspective difference between accounting and finance.

Option 1: 'Accounting is only concerned with tax preparation, whereas finance deals exclusively with budgeting.' This is incorrect because accounting encompasses much more than tax preparation, including financial reporting, and finance involves more than budgeting, such as investment management and risk assessment.

Option 2: 'Accounting focuses on recording and reporting past financial transactions, while finance emphasizes planning and managing future financial resources.' This is correct as it accurately describes the primary difference in perspective between the two fields.

Option 3: 'Finance is responsible for auditing financial statements, while accounting manages investment portfolios.' This is incorrect because auditing is typically part of accounting, and investment portfolio management is a finance function. Option 4: 'Accounting and finance are identical fields with no significant differences in perspective.' This is incorrect as accounting and finance have distinct roles and focuses.