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 would you develop to understand the effect on the business of a risk being realized?

Tax accounting

Financial accounting

Management accounting

Forensic accounting

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Verified step by step guidance

Understand the context of the question: The problem is asking which type of accounting is best suited to analyze the effect of a risk being realized on a business.

Review the definitions of the accounting types provided: Tax accounting focuses on compliance with tax laws, financial accounting deals with reporting financial information to external stakeholders, forensic accounting investigates financial discrepancies, and management accounting is used for internal decision-making and analyzing business operations.

Identify the purpose of management accounting: Management accounting is specifically designed to help managers make informed decisions by analyzing internal data, including the impact of risks and uncertainties on the business.

Explain why management accounting is the correct answer: When a risk is realized, management accounting provides tools such as variance analysis, cost-benefit analysis, and risk assessment to evaluate the financial impact and guide decision-making.

Conclude that management accounting is the appropriate type of accounting for understanding the effect of a risk being realized, as it focuses on internal analysis and decision-making processes.