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

Which financial statement reports an organization's financial position at a single point in time?

Statement of Cash Flows

Income Statement

Statement of Retained Earnings

Balance Sheet

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Verified step by step guidance

Understand the purpose of each financial statement: The Statement of Cash Flows shows cash inflows and outflows over a period of time, the Income Statement reports revenues and expenses over a period of time, and the Statement of Retained Earnings explains changes in retained earnings over a period of time. The Balance Sheet, however, reports the financial position of an organization at a specific point in time.

Recognize that the Balance Sheet provides a snapshot of the company's assets, liabilities, and equity as of a specific date. This is why it is referred to as a 'point-in-time' financial statement.

Recall the accounting equation that underpins the Balance Sheet: Assets = Liabilities + Equity. This equation ensures that the financial position is balanced and accurately reflects the organization's resources and obligations.

Identify the key components of the Balance Sheet: Assets (e.g., cash, accounts receivable, inventory), Liabilities (e.g., accounts payable, loans), and Equity (e.g., common stock, retained earnings). These components collectively represent the organization's financial position.

Conclude that the Balance Sheet is the correct answer because it uniquely reports the financial position of an organization at a single point in time, unlike the other financial statements that cover a period of time.