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

A company's cash balance is reported in which two financial statements?

Income Statement and Balance Sheet

Statement of Stockholders' Equity and Balance Sheet

Statement of Cash Flows and Income Statement

Balance Sheet and Statement of Cash Flows

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Verified step by step guidance

Understand the role of the Balance Sheet: The Balance Sheet provides a snapshot of a company's financial position at a specific point in time. It includes assets, liabilities, and equity. Cash is classified as a current asset and is reported under the 'Assets' section.

Understand the role of the Statement of Cash Flows: The Statement of Cash Flows details the inflows and outflows of cash during a specific period. It categorizes cash activities into operating, investing, and financing activities, showing how cash is generated and used.

Recognize why the Income Statement is not relevant: The Income Statement reports revenues and expenses over a period, focusing on profitability rather than the cash balance. Cash is not directly reported here.

Recognize why the Statement of Stockholders' Equity is not relevant: The Statement of Stockholders' Equity tracks changes in equity accounts, such as retained earnings and common stock, but does not report the cash balance.

Conclude that the cash balance is reported in the Balance Sheet (as part of assets) and the Statement of Cash Flows (as part of cash inflows and outflows). These two statements provide complementary views of cash: one as a static balance and the other as a dynamic flow.