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 accounts does NOT appear on the balance sheet?

Inventory

Service Revenue

Retained Earnings

Accounts Receivable

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Verified step by step guidance

Step 1: Understand the purpose of the balance sheet. The balance sheet is a financial statement that reports a company's assets, liabilities, and equity at a specific point in time. It does not include revenue or expense accounts, which are part of the income statement.

Step 2: Analyze each account listed in the problem. Inventory and Accounts Receivable are asset accounts, and Retained Earnings is an equity account. All of these appear on the balance sheet.

Step 3: Recognize that Service Revenue is a revenue account. Revenue accounts are reported on the income statement, not the balance sheet.

Step 4: Confirm that Service Revenue does NOT appear on the balance sheet because it is part of the income statement, which tracks a company's performance over a period of time.

Step 5: Conclude that the correct answer is Service Revenue, as it is the only account listed that does not belong on the balance sheet.