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 type of accounting most directly deals with transactions that require the borrower to put up collateral for the loan?

Tax accounting

Managerial accounting

Banking accounting

Financial accounting

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Verified step by step guidance

Step 1: Understand the context of the question. The problem is asking about the type of accounting that deals with transactions involving collateral for loans. Collateral is an asset pledged by a borrower to secure a loan.

Step 2: Review the definitions of the accounting types mentioned: Tax accounting focuses on compliance with tax laws and regulations; Managerial accounting deals with internal decision-making and operational planning; Banking accounting is specific to financial institutions and their operations; Financial accounting involves recording, summarizing, and reporting financial transactions.

Step 3: Recognize that transactions involving collateral for loans are typically recorded and reported in financial statements, which is the domain of Financial Accounting. This type of accounting ensures that such transactions are accurately reflected in the balance sheet and other financial reports.

Step 4: Note that Banking Accounting, while related to financial institutions, is not a standard accounting type but rather a specialized area within Financial Accounting. It focuses on the operations of banks, including loans and collateral.

Step 5: Conclude that Financial Accounting is the most relevant type of accounting for transactions requiring collateral, as it directly deals with the recording and reporting of such financial transactions.