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

Given the following list of accounts, which one would appear on a balance sheet?A) Service RevenueB) Accounts PayableC) Rent ExpenseD) Sales Revenue

Service Revenue

Accounts Payable

Sales Revenue

Rent Expense

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Verified step by step guidance

Understand the purpose of a balance sheet: A balance sheet is a financial statement that reports a company's assets, liabilities, and equity at a specific point in time. It does not include revenue or expense accounts, which are part of the income statement.

Identify the type of accounts listed in the problem: Service Revenue and Sales Revenue are revenue accounts, Rent Expense is an expense account, and Accounts Payable is a liability account.

Recall that liabilities are reported on the balance sheet: Accounts Payable represents amounts owed by the company to creditors and is classified as a current liability on the balance sheet.

Eliminate accounts that do not belong on the balance sheet: Revenue accounts (Service Revenue and Sales Revenue) and expense accounts (Rent Expense) are reported on the income statement, not the balance sheet.

Conclude that Accounts Payable is the correct account to appear on the balance sheet, as it is a liability and fits the purpose of the balance sheet.