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 is a primary focus of financial accounting?

Calculating tax liabilities for government reporting

Providing information to external users such as investors and creditors

Auditing the financial statements of other companies

Preparing detailed internal reports for management decision-making

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Verified step by step guidance

Understand the purpose of financial accounting: Financial accounting is primarily concerned with providing information to external users, such as investors, creditors, and regulatory agencies, to help them make informed decisions.

Differentiate financial accounting from other accounting types: Financial accounting focuses on external reporting, while managerial accounting is used for internal decision-making, and tax accounting deals with calculating tax liabilities.

Review the options provided: Analyze each option to determine which aligns with the primary focus of financial accounting. For example, calculating tax liabilities is related to tax accounting, and preparing internal reports is part of managerial accounting.

Identify the correct focus: The correct focus of financial accounting is providing information to external users, such as investors and creditors, through financial statements like the balance sheet, income statement, and cash flow statement.

Conclude the reasoning: Based on the analysis, the correct answer is the option that states 'Providing information to external users such as investors and creditors,' as this aligns with the primary purpose of financial accounting.