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

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

Which set of rules must accountants follow when preparing financial statements?

Generally Accepted Accounting Principles (GAAP)

Federal Reserve Accounting Standards

Internal Revenue Service (IRS) Regulations

International Monetary Fund (IMF) Guidelines

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Verified step by step guidance

Understand the purpose of the question: It is asking about the set of rules that accountants must follow when preparing financial statements. This relates to the framework or standards used in financial accounting.

Recognize that financial statements are prepared to ensure consistency, transparency, and comparability across organizations. These rules are established by authoritative bodies to guide accountants.

Identify the correct framework: Generally Accepted Accounting Principles (GAAP) is the standard set of rules in the United States that accountants follow for preparing financial statements. It ensures uniformity and compliance.

Clarify why other options are incorrect: Federal Reserve Accounting Standards are specific to the Federal Reserve system, IRS Regulations pertain to tax compliance, and IMF Guidelines are related to international monetary policies, not financial statement preparation.

Conclude that GAAP is the correct answer because it is the recognized framework for preparing financial statements in the U.S., ensuring accuracy and reliability in financial reporting.