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 types of accounting must new investors master to become more proficient investors?

Cost accounting

Tax accounting

Financial accounting

Governmental accounting

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Verified step by step guidance

Understand the purpose of Financial Accounting: Financial accounting focuses on recording, summarizing, and reporting a company's financial transactions to external stakeholders, such as investors, creditors, and regulatory agencies. It provides the foundational knowledge needed to analyze financial statements and make informed investment decisions.

Learn the key financial statements: New investors should familiarize themselves with the three primary financial statements—Income Statement, Balance Sheet, and Cash Flow Statement. These documents provide insights into a company's profitability, financial position, and cash management.

Study the principles and standards: Financial accounting is governed by principles such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). Understanding these standards helps investors interpret financial data consistently and accurately.

Focus on ratio analysis: Investors should master financial ratios, such as profitability ratios, liquidity ratios, and solvency ratios, which are derived from financial statements. These ratios help assess a company's performance and financial health.

Practice analyzing real-world examples: To become proficient, new investors should practice reviewing and interpreting financial statements from publicly traded companies. This hands-on approach builds confidence and enhances their ability to make informed investment decisions.