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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which one of the following is a key financial statement that a new business owner should be prepared to generate?

Purchase Order

Employee Timesheet

Balance Sheet

Inventory Requisition Form

Previous problemNext problem

Verified step by step guidance

Understand the purpose of financial statements: Financial statements are formal records of the financial activities and position of a business. They are essential for decision-making, tracking performance, and communicating financial health to stakeholders.

Learn about the Balance Sheet: The Balance Sheet is one of the key financial statements. It provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity. The fundamental accounting equation is Assets = Liabilities + Equity.

Differentiate the Balance Sheet from other documents: A Purchase Order, Employee Timesheet, and Inventory Requisition Form are operational documents used for specific business processes, but they do not provide a comprehensive view of the financial position of the business like the Balance Sheet does.

Recognize the importance of the Balance Sheet for a new business owner: As a new business owner, generating a Balance Sheet is crucial for understanding the financial health of the business, securing loans, attracting investors, and ensuring compliance with accounting standards.

Prepare to generate a Balance Sheet: To create a Balance Sheet, gather information about the company's assets (e.g., cash, inventory, equipment), liabilities (e.g., loans, accounts payable), and equity (e.g., owner's capital). Organize these items into the appropriate categories and ensure the accounting equation balances.