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 of the following statements about financial statements is NOT true?

The income statement reports a company's revenues and expenses over a period of time.

The statement of cash flows only includes cash inflows from operating activities.

The statement of changes in equity shows changes in owners' equity during the period.

The balance sheet shows a company's financial position at a specific point in time.

Previous problemNext problem

Verified step by step guidance

Step 1: Begin by understanding the purpose of each financial statement mentioned in the problem. The income statement reports revenues and expenses over a period of time, showing the company's profitability during that period.

Step 2: Review the statement of cash flows. It includes cash inflows and outflows from three main activities: operating, investing, and financing. The claim that it only includes cash inflows from operating activities is incorrect.

Step 3: Examine the statement of changes in equity. This statement tracks changes in owners' equity during the period, including contributions, distributions, and retained earnings.

Step 4: Analyze the balance sheet. It provides a snapshot of a company's financial position at a specific point in time, listing assets, liabilities, and equity.

Step 5: Compare the statements and identify the incorrect claim. The statement about the cash flows is not true because it excludes the other two categories (investing and financing activities).