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

Expenses are reported on which of the following financial statement(s)?

Income Statement

Balance Sheet

Statement of Retained Earnings

Statement of Cash Flows

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Understand the nature of expenses: Expenses represent the costs incurred by a business during its operations to generate revenue. They are typically reported in financial statements to reflect the financial performance and position of the company.

Identify the financial statement where expenses are primarily reported: Expenses are reported on the Income Statement, as this statement shows the revenues earned and expenses incurred during a specific period, ultimately calculating the net income or loss.

Consider the Balance Sheet: Expenses are not directly reported on the Balance Sheet. However, they can indirectly affect the Balance Sheet through retained earnings, which are part of the equity section. Retained earnings are updated based on net income or loss from the Income Statement.

Evaluate the Statement of Retained Earnings: Expenses indirectly impact this statement because retained earnings are adjusted by net income or loss, which is calculated after deducting expenses on the Income Statement.

Analyze the Statement of Cash Flows: Expenses may appear indirectly in this statement as part of operating activities, where cash outflows related to expenses are reported. However, the Statement of Cash Flows focuses on cash movements rather than the accrual basis of expenses.