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 are the main elements necessary for ensuring that costs are appropriately charged in accounting?

Focusing solely on financial statements and ignoring internal controls

Proper cost allocation, accurate record-keeping, and adherence to accounting standards

Only recording cash transactions and ignoring accruals

Maximizing revenue, minimizing expenses, and increasing market share

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Verified step by step guidance

Understand the concept of cost allocation: Cost allocation involves assigning costs to the appropriate cost objects (e.g., departments, products, or projects) based on a systematic and rational method. This ensures that costs are accurately reflected in financial statements.

Recognize the importance of accurate record-keeping: Accurate record-keeping involves maintaining detailed and organized financial records to ensure that all transactions are properly documented and can be traced back for verification and auditing purposes.

Learn about adherence to accounting standards: Accounting standards, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), provide guidelines for consistent and transparent financial reporting. Adhering to these standards ensures compliance and reliability in financial statements.

Understand why internal controls are essential: Internal controls are processes and procedures designed to safeguard assets, ensure the accuracy of financial records, and prevent fraud. Ignoring internal controls can lead to errors and mismanagement of costs.

Distinguish between accrual accounting and cash accounting: Accrual accounting records revenues and expenses when they are incurred, regardless of when cash is exchanged. This method provides a more accurate picture of financial performance compared to cash accounting, which only records transactions when cash is received or paid.