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 statement best compares financial accounting and managerial accounting?

Financial accounting is not governed by any standards, but managerial accounting must follow GAAP.

Managerial accounting reports are always published for external stakeholders, while financial accounting reports are kept confidential.

Financial accounting focuses on providing information to external users, while managerial accounting is intended for internal decision-making.

Managerial accounting is primarily concerned with historical data, whereas financial accounting emphasizes future projections.

Previous problemNext problem

Verified step by step guidance

Understand the key difference between financial accounting and managerial accounting. Financial accounting is designed to provide information to external users such as investors, creditors, and regulatory agencies, while managerial accounting focuses on providing information to internal users like managers for decision-making purposes.

Analyze the options provided in the question. Eliminate any statements that are factually incorrect or misrepresent the roles of financial and managerial accounting.

Option 1 states that financial accounting is not governed by any standards, but managerial accounting must follow GAAP. This is incorrect because financial accounting must adhere to standards like GAAP or IFRS, while managerial accounting does not have to follow such standards.

Option 2 claims that managerial accounting reports are always published for external stakeholders, while financial accounting reports are kept confidential. This is incorrect because financial accounting reports are intended for external stakeholders, and managerial accounting reports are typically confidential and used internally.

Option 3 correctly states that financial accounting focuses on providing information to external users, while managerial accounting is intended for internal decision-making. This aligns with the fundamental purpose of each type of accounting. Option 4 is incorrect because managerial accounting often involves future projections, while financial accounting primarily deals with historical data.