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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

The balance sheet is composed of which three accounts?

Equity, Revenues, and Expenses

Assets, Liabilities, and Equity

Assets, Revenues, and Expenses

Liabilities, Revenues, and Expenses

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Verified step by step guidance

Understand the purpose of the balance sheet: It is a financial statement that provides a snapshot of a company's financial position at a specific point in time.

Recognize the three main components of the balance sheet: Assets, Liabilities, and Equity. These represent what the company owns, what it owes, and the residual interest of the owners.

Clarify why Revenues and Expenses are not part of the balance sheet: Revenues and Expenses are part of the income statement, which shows the company's performance over a period of time, not its financial position.

Relate the accounting equation to the balance sheet: The accounting equation is \( \text{Assets} = \text{Liabilities} + \text{Equity} \), which directly corresponds to the structure of the balance sheet.

Review the correct answer: The balance sheet is composed of Assets, Liabilities, and Equity, as these are the accounts that reflect the company's financial position.