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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Which of the following are qualitative characteristics of accounting information according to the FASB's conceptual framework?

Comparability and profitability

Timeliness and solvency

Materiality and liquidity

Relevance and faithful representation

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Verified step by step guidance

Understand the context: The FASB's conceptual framework outlines the qualitative characteristics that make accounting information useful for decision-making. These characteristics are divided into fundamental and enhancing qualities.

Identify the fundamental qualitative characteristics: According to the FASB, the two fundamental qualitative characteristics are relevance and faithful representation. Relevance ensures the information is capable of influencing decisions, while faithful representation ensures the information accurately reflects the economic phenomena it represents.

Differentiate between fundamental and enhancing characteristics: Enhancing characteristics, such as comparability, timeliness, and understandability, improve the usefulness of information but are secondary to the fundamental characteristics.

Analyze the options provided: Comparability, profitability, timeliness, solvency, materiality, and liquidity are not fundamental characteristics according to the FASB framework. Relevance and faithful representation are the correct fundamental characteristics.

Conclude the reasoning: Based on the FASB's conceptual framework, the correct answer is relevance and faithful representation, as these are the fundamental qualitative characteristics of accounting information.