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 is primarily concerned with providing information to external users, such as investors, when a company 'goes public' and its shares become available for purchase?

Financial accounting

Cost accounting

Managerial accounting

Tax accounting

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Verified step by step guidance

Understand the purpose of each type of accounting: Financial accounting focuses on providing information to external users, such as investors, creditors, and regulatory agencies. Managerial accounting is used internally by management for decision-making. Cost accounting deals with analyzing costs for internal purposes, and Tax accounting focuses on compliance with tax laws.

Recognize the context of the problem: When a company 'goes public' and its shares become available for purchase, external users like investors need reliable financial information to make informed decisions.

Identify the type of accounting that serves external users: Financial accounting is designed to provide standardized and regulated information, such as financial statements, to external stakeholders.

Understand why other types of accounting are not suitable: Managerial accounting, cost accounting, and tax accounting are primarily used for internal purposes or compliance, not for external reporting.

Conclude that the correct answer is Financial Accounting, as it is specifically concerned with providing information to external users, such as investors, in situations like a company going public.