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 types of accounts are found on the income statement?

Owner's equity accounts

Dividends

Revenues and expenses

Assets and liabilities

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Verified step by step guidance

Understand the purpose of the income statement: The income statement is a financial report that shows a company's financial performance over a specific period. It primarily focuses on revenues and expenses to calculate net income or loss.

Clarify the types of accounts: Owner's equity accounts, dividends, assets, and liabilities are not part of the income statement. These accounts are found on other financial statements such as the balance sheet or statement of retained earnings.

Identify the correct accounts: Revenues and expenses are the two main types of accounts reported on the income statement. Revenues represent the income earned from business operations, while expenses represent the costs incurred to generate those revenues.

Relate revenues and expenses to net income: The income statement calculates net income by subtracting total expenses from total revenues. This formula can be expressed as:

Net Income = Total Revenues - Total Expenses

Conclude the explanation: Revenues and expenses are the correct types of accounts found on the income statement because they directly contribute to determining the financial performance of a company during a specific period.