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

Net income appears in which two financial statements?

Income Statement and Statement of Retained Earnings

Income Statement and Balance Sheet

Statement of Retained Earnings and Balance Sheet

Balance Sheet and Statement of Cash Flows

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Understand the concept of net income: Net income is the profit a company earns after deducting all expenses, taxes, and costs from its total revenue. It is a key indicator of a company's financial performance.

Identify the financial statements: The four primary financial statements are the Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows. Each serves a specific purpose in reporting financial information.

Determine where net income is reported: Net income is first calculated and reported on the Income Statement, as it represents the company's profitability for a specific period.

Understand the connection to the Statement of Retained Earnings: Net income flows into the Statement of Retained Earnings, where it is added to the beginning retained earnings balance and adjusted for dividends to calculate the ending retained earnings balance.

Clarify why net income does not appear in the Balance Sheet or Statement of Cash Flows: The Balance Sheet reports assets, liabilities, and equity at a specific point in time, while the Statement of Cash Flows focuses on cash inflows and outflows. Net income indirectly impacts these statements but is not directly reported on them.