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 is a characteristic of financial accounting?

It is not governed by generally accepted accounting principles (GAAP).

It emphasizes future projections rather than historical data.

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

It is primarily concerned with budgeting and internal decision-making.

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Verified step by step guidance

Understand the purpose of financial accounting: Financial accounting is primarily concerned with providing information to external users, such as investors, creditors, and regulatory agencies, to help them make informed decisions.

Recognize the governing principles: Financial accounting is governed by generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS), ensuring consistency and comparability of financial statements.

Distinguish between historical data and future projections: Financial accounting emphasizes historical data, recording and reporting past transactions, rather than focusing on future projections or forecasts.

Identify the audience: Financial accounting focuses on external users, unlike managerial accounting, which is designed for internal users such as management for budgeting and decision-making purposes.

Clarify the scope: Financial accounting is not primarily concerned with internal processes like budgeting or operational decision-making; instead, it aims to present a clear and accurate picture of an organization's financial position and performance.