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 pro forma balance sheet is developed by integrating the information from the:

bank reconciliation and the accounts receivable ledger

statement of cash flows and the general ledger

statement of retained earnings and the trial balance

pro forma income statement and the cash budget

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Verified step by step guidance

Understand the purpose of a pro forma balance sheet: It is a financial statement that projects the future financial position of a company based on expected revenues, expenses, and other financial activities.

Recognize the key components needed to prepare a pro forma balance sheet: These include projected assets, liabilities, and equity balances.

Identify the sources of information: The pro forma income statement provides projected net income, which impacts retained earnings, while the cash budget provides details on expected cash inflows and outflows, which affect the cash account and other related items.

Integrate the pro forma income statement: Use the projected net income to adjust retained earnings in the equity section of the balance sheet. Ensure that any dividends declared are subtracted from retained earnings.

Incorporate the cash budget: Use the cash budget to update the cash account in the assets section and adjust any related liabilities or financing activities. Ensure that the balance sheet remains balanced by verifying that total assets equal total liabilities and equity.