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 accounts is found on an income statement?

Prepaid Expenses

Accounts Payable

Retained Earnings

Service Revenue

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Understand the purpose of the income statement: The income statement is a financial report that shows a company's revenues, expenses, and net income over a specific period. It focuses on accounts related to the company's operations during that time frame.

Identify the nature of each account listed: Prepaid Expenses and Accounts Payable are balance sheet accounts. Prepaid Expenses represent assets (future benefits), and Accounts Payable represents liabilities (amounts owed). Retained Earnings is part of the equity section of the balance sheet, reflecting accumulated profits or losses.

Recognize that Service Revenue is an income statement account: Service Revenue represents income earned from providing services, which directly contributes to the company's total revenue on the income statement.

Confirm that Service Revenue aligns with the income statement's purpose: Since the income statement tracks revenues and expenses, Service Revenue is included as it reflects earnings from operations during the reporting period.

Conclude that Service Revenue is the correct answer: Based on the analysis, Service Revenue is the account found on the income statement, while the other accounts belong to the balance sheet.