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

15. GAAP vs IFRS

GAAP vs. IFRS: Introduction

Financial Accounting

15. GAAP vs IFRS

GAAP vs. IFRS: Introduction

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Multiple Choice

Generally Accepted Accounting Principles (GAAP) require that financial information possess which of the following characteristics?

Emphasis on future-oriented information

Strict adherence to tax regulations

Relevance and reliability

Only comparability

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Verified step by step guidance

Understand the concept of Generally Accepted Accounting Principles (GAAP), which are a set of rules and standards designed to ensure consistency, reliability, and comparability in financial reporting.

Recognize that GAAP emphasizes the importance of financial information being relevant and reliable. Relevance means the information should be useful for decision-making, while reliability ensures the information is accurate and free from bias.

Clarify that GAAP does not prioritize future-oriented information, as it primarily focuses on historical financial data to ensure accuracy and comparability.

Note that GAAP does not require strict adherence to tax regulations, as tax accounting and financial accounting serve different purposes and follow different rules.

Understand that comparability is an important characteristic under GAAP, but it is not the sole focus. Relevance and reliability are the primary characteristics required for financial information under GAAP.