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

When looking at equity, which type of accounting primarily focuses on providing information to external users such as investors and creditors?

Cost accounting

Managerial accounting

Tax accounting

Financial accounting

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Verified step by step guidance

Understand the purpose of each type of accounting: Cost accounting focuses on internal cost management, Managerial accounting provides information for internal decision-making, Tax accounting deals with compliance and tax reporting, and Financial accounting focuses on external reporting.

Recognize that equity is a key component of financial statements, which are primarily used by external users such as investors and creditors to assess the financial health of a company.

Identify that Financial accounting is designed to provide standardized and regulated information, such as balance sheets, income statements, and statements of equity, to external stakeholders.

Understand that external users rely on Financial accounting because it adheres to established frameworks like Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), ensuring consistency and comparability.

Conclude that Financial accounting is the correct answer because it is specifically tailored to meet the needs of external users, including investors and creditors, by providing detailed and reliable information about equity and other financial aspects.