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 two financial statements are typically prepared directly from the information on the worksheet at the end of an accounting period?

Income Statement and Statement of Cash Flows

Income Statement and Balance Sheet

Statement of Retained Earnings and Statement of Cash Flows

Statement of Cash Flows and Balance Sheet

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Verified step by step guidance

Understand the purpose of the worksheet: At the end of an accounting period, the worksheet is used to summarize all account balances, including adjustments, to prepare financial statements.

Identify the financial statements typically prepared directly from the worksheet: The Income Statement and Balance Sheet are derived from the worksheet because they summarize the company's financial performance and position.

Explain the Income Statement: The Income Statement reports revenues and expenses, showing the net income or loss for the period. These figures are directly taken from the worksheet's revenue and expense accounts.

Explain the Balance Sheet: The Balance Sheet provides a snapshot of the company's assets, liabilities, and equity at the end of the period. The adjusted balances for these accounts are directly transferred from the worksheet.

Clarify why other options are incorrect: The Statement of Cash Flows requires additional information beyond the worksheet, such as cash transactions, and the Statement of Retained Earnings is derived from net income (from the Income Statement) and dividends, not directly from the worksheet.