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

GAAP is concerned with making sure that financial reports are:

consistent, comparable, and reliable

prepared only for tax purposes

based solely on management's discretion

focused exclusively on future projections

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Verified step by step guidance

Understand the purpose of GAAP (Generally Accepted Accounting Principles): GAAP is a set of accounting standards designed to ensure that financial reporting is transparent, consistent, and reliable across organizations.

Analyze the options provided in the question: The correct answer should align with the principles of GAAP, which emphasize consistency, comparability, and reliability in financial reporting.

Eliminate incorrect options: For example, 'prepared only for tax purposes' is incorrect because GAAP is not solely focused on tax reporting; it applies to all financial reporting. Similarly, 'based solely on management's discretion' is incorrect because GAAP requires adherence to standardized rules, not subjective discretion.

Consider the role of future projections: GAAP focuses on historical and current financial data rather than exclusively on future projections, making 'focused exclusively on future projections' an incorrect option.

Select the correct answer: The correct answer is 'consistent, comparable, and reliable,' as these are the core principles that GAAP aims to uphold in financial reporting.