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 statements is true regarding financial accounting?

Financial accounting mainly deals with forecasting future business trends.

Financial accounting focuses on providing information to external users such as investors and creditors.

Financial accounting is primarily concerned with internal decision-making processes.

Financial accounting reports are not required to follow any standardized guidelines.

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Verified step by step guidance

Understand the purpose of financial accounting: Financial accounting is designed to provide information about a company's financial performance and position to external users, such as investors, creditors, and regulatory agencies.

Clarify the difference between financial accounting and managerial accounting: Financial accounting focuses on external reporting, while managerial accounting is concerned with internal decision-making processes.

Recognize the importance of standardized guidelines: Financial accounting reports must adhere to standardized guidelines, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), to ensure consistency and comparability.

Eliminate incorrect options: Financial accounting does not primarily deal with forecasting future business trends, nor is it unconcerned with standardized guidelines. These are characteristics of other areas, such as managerial accounting or informal reporting.

Identify the correct statement: Based on the above clarifications, the correct statement is that financial accounting focuses on providing information to external users such as investors and creditors.