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

2. Transaction Analysis

Classified Balance Sheet Components

Financial Accounting

2. Transaction Analysis

Classified Balance Sheet Components

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Struggling with Financial Accounting?

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Multiple Choice

Which financial statement reports a company's assets and liabilities?

Income Statement

Balance Sheet

Statement of Retained Earnings

Statement of Cash Flows

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Verified step by step guidance

Understand the purpose of each financial statement: The Income Statement reports a company's revenues and expenses, the Statement of Retained Earnings shows changes in retained earnings, the Statement of Cash Flows details cash inflows and outflows, and the Balance Sheet provides a snapshot of a company's financial position, including assets, liabilities, and equity.

Focus on the Balance Sheet: The Balance Sheet is specifically designed to report a company's assets, liabilities, and equity at a specific point in time.

Define assets and liabilities: Assets are resources owned by the company that provide future economic benefits, while liabilities are obligations the company owes to external parties.

Recognize the structure of the Balance Sheet: It is divided into three main sections—assets, liabilities, and equity. The fundamental accounting equation is Assets = Liabilities + Equity.

Conclude that the Balance Sheet is the correct financial statement for reporting a company's assets and liabilities, as it provides a clear and organized view of these elements.