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 information is NOT typically included in the financial statements of a company?

Personal expenses of the company's owners

Revenue earned during the period

Net income for the accounting period

Company's total assets and liabilities

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Verified step by step guidance

Understand the purpose of financial statements: Financial statements are formal records of a company's financial activities and position. They are designed to provide information about the company's financial performance and condition to stakeholders such as investors, creditors, and management.

Identify the typical components of financial statements: Financial statements generally include the income statement, balance sheet, statement of cash flows, and statement of changes in equity. These documents report revenue, expenses, net income, assets, liabilities, and equity.

Analyze the options provided: Review each option to determine whether it aligns with the purpose and components of financial statements. Revenue earned during the period, net income for the accounting period, and the company's total assets and liabilities are standard elements of financial statements.

Consider the nature of personal expenses: Personal expenses of the company's owners are not related to the company's financial performance or position. These expenses are personal in nature and are not included in the company's financial statements unless the company is a sole proprietorship and the expenses are directly tied to business operations.

Conclude which information is NOT typically included: Based on the analysis, personal expenses of the company's owners are not part of the financial statements because they do not reflect the company's financial activities or position.