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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following best describes the primary purpose of tax accounting compared to financial accounting?

Tax accounting focuses on preparing tax returns and ensuring compliance with tax laws, while financial accounting focuses on providing information to external stakeholders such as investors and creditors.

Tax accounting is only concerned with cash transactions, whereas financial accounting records both cash and accrual transactions.

Tax accounting is used to prepare financial statements for public reporting, while financial accounting is used solely for internal management decisions.

Tax accounting and financial accounting both follow International Financial Reporting Standards (IFRS) exclusively.

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the primary purpose of tax accounting. Tax accounting is primarily concerned with preparing tax returns and ensuring compliance with tax laws. It focuses on the rules and regulations set by tax authorities.

Step 2: Understand the primary purpose of financial accounting. Financial accounting is designed to provide information to external stakeholders, such as investors, creditors, and regulatory agencies. It focuses on presenting a clear and accurate picture of a company's financial position and performance.

Step 3: Compare the scope of transactions recorded. Tax accounting often emphasizes cash transactions and taxable income, while financial accounting records both cash and accrual transactions to provide a comprehensive view of financial activities.

Step 4: Clarify the use of standards. Financial accounting typically follows frameworks like International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP), whereas tax accounting adheres to tax laws and regulations specific to a jurisdiction.

Step 5: Eliminate incorrect statements. Tax accounting is not used for public financial statement reporting, nor does it exclusively follow IFRS. Financial accounting is not solely for internal management decisions, as it serves external stakeholders.