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 statement best describes the AICPA interpretation relating to the form of organization for public accounting firms?

A public accounting firm may organize in any form as long as it complies with state law and the AICPA Code of Professional Conduct.

The AICPA requires all public accounting firms to be organized as corporations.

A public accounting firm can only operate as a partnership according to the AICPA interpretation.

A public accounting firm must be organized only as a sole proprietorship to comply with AICPA guidelines.

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Verified step by step guidance

Step 1: Understand the role of the AICPA (American Institute of Certified Public Accountants) in setting ethical guidelines and professional standards for public accounting firms.

Step 2: Review the AICPA Code of Professional Conduct, which outlines the requirements for the form of organization of public accounting firms. This code ensures compliance with ethical standards and state laws.

Step 3: Recognize that the AICPA does not mandate a specific organizational structure, such as sole proprietorship, partnership, or corporation, for public accounting firms. Instead, it allows flexibility as long as the firm complies with state law and adheres to the AICPA Code of Professional Conduct.

Step 4: Eliminate incorrect options by identifying statements that conflict with the AICPA's interpretation. For example, the AICPA does not require firms to operate solely as corporations or partnerships.

Step 5: Conclude that the correct interpretation is that a public accounting firm may organize in any form as long as it complies with state law and the AICPA Code of Professional Conduct.