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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following best describes the primary focus of managerial accounting compared to financial accounting?

Managerial accounting provides information for internal decision-making, while financial accounting focuses on external reporting.

Managerial accounting follows strict Generally Accepted Accounting Principles (GAAP) for external users.

Financial accounting is used only by company managers for budgeting purposes.

Managerial accounting is primarily concerned with preparing tax returns.

Previous problemNext problem

Verified step by step guidance

Understand the distinction between managerial accounting and financial accounting. Managerial accounting focuses on providing information to internal users (e.g., managers) for decision-making, planning, and control, while financial accounting focuses on providing information to external users (e.g., investors, creditors) through standardized reports.

Recognize that managerial accounting does not follow strict Generally Accepted Accounting Principles (GAAP). Instead, it is flexible and tailored to meet the specific needs of internal users.

Identify that financial accounting is not limited to budgeting purposes. It encompasses the preparation of financial statements such as the income statement, balance sheet, and cash flow statement for external reporting.

Clarify that managerial accounting is not primarily concerned with preparing tax returns. Tax accounting is a separate field focused on compliance with tax laws and regulations.

Conclude that the correct description is: Managerial accounting provides information for internal decision-making, while financial accounting focuses on external reporting.