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 concepts are pervasive in the application of auditing standards?

Historical cost and conservatism

Materiality and audit risk

Consistency and comparability

Accrual and matching

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Verified step by step guidance

Understand the question: The problem is asking which concepts are pervasive in the application of auditing standards. This requires knowledge of auditing principles and their foundational concepts.

Review the options provided: The options include 'Historical cost and conservatism,' 'Materiality and audit risk,' 'Consistency and comparability,' and 'Accrual and matching.'

Focus on the key concepts in auditing standards: Auditing standards emphasize evaluating the significance of financial information (materiality) and the likelihood of errors or misstatements (audit risk). These are critical for auditors to assess the reliability of financial statements.

Eliminate options that are not directly related to auditing standards: For example, 'Historical cost and conservatism' are accounting principles, not auditing standards. Similarly, 'Accrual and matching' pertain to accounting methods, and 'Consistency and comparability' are qualitative characteristics of financial information.

Conclude that 'Materiality and audit risk' are the correct concepts as they are central to the application of auditing standards, guiding auditors in their judgment and decision-making processes.