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 items would be found on a company's balance sheet?

Retained Earnings

Service Revenue

Accounts Receivable

Dividends Declared

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Verified step by step guidance

Step 1: Understand the purpose of a balance sheet. A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It includes three main components: assets, liabilities, and equity.

Step 2: Identify the items that belong to the balance sheet categories. Retained Earnings and Accounts Receivable are items that appear on the balance sheet. Retained Earnings are part of the equity section, while Accounts Receivable is part of the assets section.

Step 3: Differentiate between balance sheet and income statement items. Service Revenue and Dividends Declared are not part of the balance sheet. Service Revenue is reported on the income statement as part of the company's revenues, and Dividends Declared are reported in the statement of retained earnings or cash flow statement, not directly on the balance sheet.

Step 4: Categorize the correct items. Retained Earnings should be listed under the equity section of the balance sheet, and Accounts Receivable should be listed under the current assets section.

Step 5: Review the balance sheet structure. Ensure that all items are properly classified under assets, liabilities, or equity, and confirm that Service Revenue and Dividends Declared are excluded from the balance sheet.