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

On which financial statement would the Supplies account appear?

Income Statement

Statement of Retained Earnings

Balance Sheet

Statement of Cash Flows

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Verified step by step guidance

Understand the nature of the Supplies account: Supplies are considered a current asset because they represent items that will be used in the near future for business operations.

Review the purpose of the Balance Sheet: The Balance Sheet is a financial statement that reports a company's assets, liabilities, and equity at a specific point in time.

Identify where current assets are reported: Current assets, including Supplies, are listed on the Balance Sheet under the 'Assets' section.

Compare the other financial statements: The Income Statement reports revenues and expenses, the Statement of Retained Earnings shows changes in retained earnings, and the Statement of Cash Flows tracks cash inflows and outflows. Supplies do not fit into these categories.

Conclude that the Supplies account appears on the Balance Sheet because it is classified as a current asset.