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

The ending balance of the retained earnings account appears in which of the following financial statements?

The statement of cash flows

The trial balance

The income statement

The balance sheet

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Understand the concept of retained earnings: Retained earnings represent the cumulative amount of net income that a company has retained, rather than distributed as dividends, over time.

Identify the purpose of the balance sheet: The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, including assets, liabilities, and equity.

Recognize where retained earnings are reported: Retained earnings are part of the equity section of the balance sheet, as they represent the portion of net income that contributes to the company's equity.

Clarify why retained earnings do not appear in other statements: The statement of cash flows focuses on cash transactions, the trial balance is a tool for internal accounting checks, and the income statement reports revenues and expenses for a period, not cumulative retained earnings.

Conclude that the ending balance of retained earnings is specifically reported in the equity section of the balance sheet, as it reflects the company's accumulated profits after dividends.