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 function that the financial system provides for savers and borrowers?

Auditing the financial statements of corporations

Facilitating the transfer of funds between savers and borrowers

Preparing tax returns for individuals

Setting accounting standards for public companies

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Verified step by step guidance

Understand the role of the financial system: The financial system primarily exists to facilitate the efficient allocation of resources, enabling savers to lend their surplus funds to borrowers who need capital.

Identify the key function: The financial system provides mechanisms such as banks, financial markets, and intermediaries to transfer funds between savers and borrowers, ensuring liquidity and access to capital.

Eliminate unrelated options: Auditing financial statements, preparing tax returns, and setting accounting standards are functions of other entities like auditors, tax professionals, and regulatory bodies, not the financial system.

Focus on the correct function: Facilitating the transfer of funds between savers and borrowers is the core function of the financial system, as it bridges the gap between those with excess funds and those in need of financing.

Conclude the reasoning: The correct answer is the option that aligns with the financial system's primary purpose, which is facilitating the transfer of funds between savers and borrowers.