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 costs are reported on both a company's income statement and balance sheet?

Accumulated Depreciation

Depreciation Expense

Inventory

Cost of Goods Sold

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Understand the nature of each cost mentioned in the problem: Accumulated Depreciation, Depreciation Expense, Inventory, and Cost of Goods Sold. Determine whether they appear on the income statement, balance sheet, or both.

Recall that Accumulated Depreciation is a contra-asset account that reduces the value of fixed assets on the balance sheet. It does not appear on the income statement.

Depreciation Expense represents the allocation of the cost of tangible assets over their useful life. It is reported on the income statement as an expense but does not appear on the balance sheet.

Inventory is a current asset that is reported on the balance sheet. It is not directly reported on the income statement, but its changes are reflected in the calculation of Cost of Goods Sold.

Cost of Goods Sold is an expense that is reported on the income statement. It does not appear on the balance sheet. Based on this analysis, identify which costs are reported on both the income statement and balance sheet.