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 is NOT true of accounting principles?

They are developed by recognized standard-setting bodies.

They help ensure consistency and comparability in financial reporting.

They provide a standardized framework for preparing financial statements.

They are universally accepted and do not change over time.

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Verified step by step guidance

Understand the concept of accounting principles: Accounting principles are the rules and guidelines that govern financial accounting practices. They are developed by recognized standard-setting bodies such as the Financial Accounting Standards Board (FASB) or the International Accounting Standards Board (IASB).

Review the purpose of accounting principles: These principles ensure consistency and comparability in financial reporting, allowing stakeholders to analyze and interpret financial statements effectively.

Examine the framework provided by accounting principles: Accounting principles provide a standardized framework for preparing financial statements, ensuring that financial information is presented in a clear and uniform manner.

Analyze the statement 'They are universally accepted and do not change over time': This is NOT true because accounting principles evolve over time to adapt to changes in business practices, economic conditions, and regulatory requirements. For example, new standards may be issued to address emerging issues or improve financial reporting quality.

Conclude that the correct answer is the statement 'They are universally accepted and do not change over time,' as it contradicts the dynamic nature of accounting principles, which are subject to updates and revisions by standard-setting bodies.