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 of the following is NOT a characteristic of the balance sheet?

It shows the company's revenues and expenses over a period of time.

It includes assets, liabilities, and shareholders' equity.

It reports a company's financial position at a specific point in time.

It follows the accounting equation: Assets = Liabilities + Equity.

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Verified step by step guidance

Step 1: Understand the purpose of the balance sheet. The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It includes assets, liabilities, and shareholders' equity.

Step 2: Recall the accounting equation. The balance sheet is structured based on the fundamental accounting equation: Assets = Liabilities + Equity. This equation ensures that the balance sheet is balanced.

Step 3: Differentiate the balance sheet from other financial statements. Unlike the income statement, which shows revenues and expenses over a period of time, the balance sheet focuses on a single point in time and does not include revenues and expenses.

Step 4: Analyze the options provided in the question. Identify which characteristic does not align with the purpose and structure of the balance sheet. Specifically, the statement 'It shows the company's revenues and expenses over a period of time' describes the income statement, not the balance sheet.

Step 5: Conclude that the correct answer is the characteristic that does not apply to the balance sheet, which is the statement about revenues and expenses over a period of time.