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) are designed to provide guidance for which of the following?

Auditing government agencies worldwide

Preparing and presenting financial statements in the United States

Setting international tax rates

Regulating stock market trading

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Verified step by step guidance

Understand the concept of Generally Accepted Accounting Principles (GAAP): GAAP refers to a set of accounting standards, principles, and procedures that companies in the United States must follow when preparing and presenting financial statements. It ensures consistency, transparency, and comparability in financial reporting.

Identify the scope of GAAP: GAAP is specific to the United States and does not apply to international accounting standards, which are governed by the International Financial Reporting Standards (IFRS). Therefore, GAAP does not set international tax rates or regulate stock market trading.

Eliminate irrelevant options: Auditing government agencies worldwide and setting international tax rates are outside the scope of GAAP. Similarly, regulating stock market trading is not a function of GAAP.

Focus on the correct purpose of GAAP: The primary purpose of GAAP is to provide guidance for preparing and presenting financial statements in the United States. This includes ensuring that financial information is accurate, consistent, and comparable across different organizations.

Conclude the correct answer: Based on the explanation above, the correct answer is 'Preparing and presenting financial statements in the United States.'