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

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

What must financial statements prepared by public companies do?

Be audited only if the company chooses to

Be prepared only for internal management use

Comply with Generally Accepted Accounting Principles (GAAP)

Exclude disclosures about significant accounting policies

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Verified step by step guidance

Understand the purpose of financial statements: Financial statements are formal records of the financial activities and position of a business, person, or other entity. For public companies, these statements are intended to provide transparency to investors, regulators, and other stakeholders.

Recognize the regulatory requirements for public companies: Public companies are required to prepare financial statements in compliance with Generally Accepted Accounting Principles (GAAP) to ensure consistency, reliability, and comparability of financial information.

Identify the role of GAAP: GAAP provides a framework of accounting standards, principles, and procedures that companies must follow when preparing their financial statements. This ensures that the financial information is accurate and adheres to a standardized format.

Understand the importance of disclosures: Public companies must include disclosures about significant accounting policies and other relevant information in their financial statements. These disclosures provide additional context and transparency to help users understand the financial data.

Clarify the auditing requirement: Financial statements of public companies must be audited by independent external auditors to ensure compliance with GAAP and to provide assurance that the financial statements are free from material misstatements.