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 types of accounting is primarily concerned with the valuation and reporting of inventory (stock) in financial statements?

Financial Accounting

Managerial Accounting

Tax Accounting

Cost Accounting

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Verified step by step guidance

Step 1: Understand the primary focus of Financial Accounting. Financial Accounting is concerned with preparing financial statements that provide information about a company's financial position, performance, and cash flows. It includes the valuation and reporting of inventory as part of the balance sheet and income statement.

Step 2: Review the purpose of Managerial Accounting. Managerial Accounting focuses on providing internal management with information for decision-making, planning, and controlling operations. It is not primarily concerned with external reporting or inventory valuation in financial statements.

Step 3: Examine Tax Accounting. Tax Accounting deals with compliance with tax laws and regulations, focusing on calculating taxable income and preparing tax returns. It does not prioritize inventory valuation for financial reporting purposes.

Step 4: Analyze Cost Accounting. Cost Accounting is concerned with determining the cost of production or services, which helps in budgeting and cost control. While it may involve inventory costing, its primary focus is not on external financial reporting.

Step 5: Conclude that Financial Accounting is the correct answer because it is primarily concerned with the valuation and reporting of inventory in financial statements, aligning with its purpose of providing accurate financial information to external stakeholders.