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

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

Financial Accounting

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

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Multiple Choice

Revenues and expenses are reported in the:

Statement of Cash Flows

Statement of Retained Earnings

Income Statement

Balance Sheet

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Understand the purpose of each financial statement: The Income Statement reports a company's revenues and expenses over a specific period, showing the net income or loss. The Statement of Cash Flows focuses on cash inflows and outflows, the Statement of Retained Earnings tracks changes in retained earnings, and the Balance Sheet provides a snapshot of assets, liabilities, and equity at a specific point in time.

Identify the key elements of the problem: Revenues and expenses are financial performance metrics that are used to calculate net income or loss. These are not directly related to cash flows, retained earnings, or the balance sheet.

Recall the structure of the Income Statement: It begins with revenues, subtracts expenses, and arrives at net income or loss. This makes it the correct financial statement for reporting revenues and expenses.

Eliminate incorrect options: The Statement of Cash Flows deals with cash transactions, not revenues and expenses. The Statement of Retained Earnings focuses on changes in retained earnings, and the Balance Sheet does not report revenues or expenses.

Conclude that the Income Statement is the correct answer because it is specifically designed to report revenues and expenses, providing a clear picture of a company's financial performance over a period.