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 included on an income statement?

Retained Earnings

Net Income

Accounts Payable

Revenue

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Understand the purpose of an income statement: It is a financial report that shows a company's financial performance over a specific period, including revenues, expenses, and resulting net income or loss.

Identify the components of an income statement: The key items include revenues, expenses, gains, losses, and net income. Retained earnings and accounts payable are not part of the income statement; they belong to other financial statements (retained earnings are part of the statement of retained earnings, and accounts payable are part of the balance sheet).

Clarify the term 'Revenue': Revenue represents the income earned from the sale of goods or services during the reporting period. It is a primary component of the income statement and is listed at the top of the statement.

Clarify the term 'Net Income': Net income is the result of subtracting total expenses from total revenues. It represents the company's profit or loss for the period and is included at the bottom of the income statement.

Exclude unrelated items: Retained earnings and accounts payable are not included on the income statement. Retained earnings reflect accumulated profits and are part of the equity section of the balance sheet, while accounts payable represent liabilities and are part of the balance sheet.