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 financial statement presents the financial position of a company on a particular date?

Balance Sheet

Statement of Cash Flows

Income Statement

Statement of Retained Earnings

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Verified step by step guidance

Understand the purpose of each financial statement: The Balance Sheet shows the financial position of a company at a specific point in time, detailing assets, liabilities, and equity. The Statement of Cash Flows tracks cash inflows and outflows over a period. The Income Statement summarizes revenues and expenses over a period, showing profitability. The Statement of Retained Earnings explains changes in retained earnings over a period.

Focus on the key phrase 'financial position on a particular date': This indicates a snapshot of the company's financial status, which aligns with the purpose of the Balance Sheet.

Recall the structure of the Balance Sheet: It is divided into three main sections—Assets, Liabilities, and Equity. Assets represent resources owned by the company, liabilities are obligations owed, and equity represents the owners' residual interest.

Compare the Balance Sheet to other financial statements: Unlike the Statement of Cash Flows, Income Statement, or Statement of Retained Earnings, which cover a period of time, the Balance Sheet is unique in presenting data as of a specific date.

Conclude that the Balance Sheet is the financial statement that presents the financial position of a company on a particular date, based on its purpose and structure.