The Financial Accounting Foundations test is expected to, among other things, test a job candidate's knowledge of: (i) the underlying principles and concepts guiding the recording of economic events that place during (and at the end of) the accounting period; (ii) how the accounting cycle works; (iii) how financial statements are prepared and analyzed; (iv) how business combinations⸺the result of M&A deals⸺are accounted for in the books; (v) how leases are accounted for; and (vi) how to make financial reporting decisions that maintain a healthy balance between profit maximization and ethics.
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