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

The full-disclosure principle requires that financial statements report which of the following?

Only information required by law, regardless of its relevance

Only quantitative information, excluding qualitative disclosures

Only information that is favorable to the company

All information that could affect users' understanding of the financial statements

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Verified step by step guidance

Understand the full-disclosure principle: This principle requires that all relevant information that could influence the decision-making of users of financial statements be disclosed. It ensures transparency and completeness in financial reporting.

Identify the types of information that must be disclosed: This includes both quantitative (numerical) and qualitative (descriptive) information. Examples include financial data, management discussions, and notes to the financial statements.

Recognize that the principle is not limited to information required by law: The full-disclosure principle goes beyond legal requirements to include any information that could affect users' understanding of the financial statements.

Understand that the principle is neutral: It requires disclosure of both favorable and unfavorable information about the company to provide a balanced and accurate view of its financial position.

Apply the principle in practice: When preparing financial statements, ensure that all material information, whether required by law or not, and whether favorable or unfavorable, is disclosed to provide users with a complete understanding of the company's financial situation.