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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

Which of the following are considered the four general accounting principles?

Historical cost principle, Realization principle, Objectivity principle, Periodicity principle

Materiality principle, Conservatism principle, Going concern principle, Dual aspect principle

Entity principle, Accrual principle, Consistency principle, Prudence principle

Cost principle, Revenue recognition principle, Matching principle, Full disclosure principle

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Verified step by step guidance

Step 1: Understand the concept of accounting principles. Accounting principles are the fundamental guidelines that govern the preparation and presentation of financial statements. They ensure consistency, reliability, and comparability of financial information.

Step 2: Review the four general accounting principles mentioned in the problem. These are: Cost principle, Revenue recognition principle, Matching principle, and Full disclosure principle.

Step 3: Define each principle: - Cost principle: Assets are recorded at their original purchase price, not at current market value. - Revenue recognition principle: Revenue is recognized when it is earned, regardless of when cash is received. - Matching principle: Expenses are matched with the revenues they help generate in the same accounting period. - Full disclosure principle: All relevant financial information must be disclosed in the financial statements.

Step 4: Compare the principles listed in the problem with the correct answer provided. Identify which principles align with the correct answer and which do not.

Step 5: Conclude that the correct answer is based on the fundamental principles that guide financial reporting and ensure accurate representation of a company's financial position.