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 is typically prepared first in the accounting cycle?

Income Statement

Statement of Cash Flows

Balance Sheet

Statement of Retained Earnings

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Verified step by step guidance

Understand the accounting cycle: The accounting cycle is a series of steps that businesses follow to record, summarize, and report financial transactions. It typically ends with the preparation of financial statements.

Recognize the sequence of financial statements: Financial statements are prepared in a specific order because the information from one statement is often used in the preparation of the next. The sequence is important for accuracy and logical flow.

Identify the role of the Income Statement: The Income Statement is prepared first because it summarizes revenues and expenses, ultimately calculating net income or net loss. This net income figure is essential for preparing subsequent statements.

Understand the connection to the Statement of Retained Earnings: The net income from the Income Statement is used to update retained earnings in the Statement of Retained Earnings. This is why the Income Statement must be prepared first.

Recognize the dependency of other statements: The Balance Sheet and Statement of Cash Flows rely on information from the Income Statement and Statement of Retained Earnings. Therefore, the Income Statement is the logical starting point in the preparation of financial statements.