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 is typically prepared and presented first in a company's annual financial reporting process?

Income Statement

Balance Sheet

Statement of Changes in Equity

Statement of Cash Flows

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Verified step by step guidance

Understand the purpose of each financial statement: The Income Statement shows a company's revenues and expenses over a period, the Balance Sheet provides a snapshot of assets, liabilities, and equity at a specific point in time, the Statement of Changes in Equity tracks changes in equity, and the Statement of Cash Flows details cash inflows and outflows.

Recognize the logical sequence of preparation: The Income Statement is typically prepared first because it provides the net income figure, which is needed for other statements like the Statement of Changes in Equity and the Balance Sheet.

Note the dependency between statements: The net income from the Income Statement flows into the Statement of Changes in Equity, which then impacts the equity section of the Balance Sheet.

Understand the role of the Statement of Cash Flows: This statement is often prepared last because it uses information from the Income Statement and Balance Sheet to reconcile cash movements.

Conclude that the Income Statement is typically prepared and presented first in the annual financial reporting process, as it serves as the foundation for other financial statements.