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 an example of managerial accounting?

Filing tax returns with the IRS

Preparing internal budgets for departmental use

Reporting quarterly earnings to shareholders

Auditing financial statements for external users

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Verified step by step guidance

Understand the distinction between financial accounting and managerial accounting. Financial accounting focuses on providing information to external users (e.g., shareholders, creditors, regulatory agencies), while managerial accounting focuses on providing information to internal users (e.g., managers) for decision-making purposes.

Analyze each option provided in the question to determine whether it aligns with the purpose of managerial accounting or financial accounting.

Option 1: 'Filing tax returns with the IRS' - This is a compliance activity related to tax reporting, which is not part of managerial accounting. It falls under tax accounting.

Option 3: 'Reporting quarterly earnings to shareholders' - This is an example of financial accounting because it involves providing information to external users (shareholders).

Option 4: 'Auditing financial statements for external users' - This is also related to financial accounting, as it ensures the accuracy of financial reports for external stakeholders. Therefore, the correct answer is Option 2: 'Preparing internal budgets for departmental use,' as it involves internal decision-making and planning, which are key aspects of managerial accounting.