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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Struggling with Financial Accounting?

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Multiple Choice

Which of the following is an example of financial accounting?

Filing a company's tax returns with the IRS

Preparing a company's annual financial statements for external stakeholders

Analyzing cost behavior for internal management decisions

Auditing a company's internal controls

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Verified step by step guidance

Understand the definition of financial accounting: Financial accounting involves preparing financial statements and reports that provide information about a company's financial performance and position to external stakeholders, such as investors, creditors, and regulatory agencies.

Review the options provided in the question and identify which activities align with the purpose of financial accounting. For example, filing tax returns is related to tax accounting, analyzing cost behavior is part of managerial accounting, and auditing internal controls is part of auditing.

Focus on the option that mentions preparing a company's annual financial statements for external stakeholders. This activity directly aligns with the purpose of financial accounting, as it involves creating reports for external users.

Eliminate the other options that do not match the definition of financial accounting. Filing tax returns, analyzing cost behavior, and auditing internal controls are not examples of financial accounting.

Conclude that the correct example of financial accounting is preparing a company's annual financial statements for external stakeholders, as this is the primary function of financial accounting.