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

A firm's ________ reports the profit or loss for the firm over a specified time period.

statement of cash flows

statement of retained earnings

income statement

balance sheet

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Understand the purpose of each financial statement: The statement of cash flows shows the inflows and outflows of cash during a period, the statement of retained earnings tracks changes in retained earnings, the balance sheet provides a snapshot of the firm's financial position at a specific point in time, and the income statement reports the profit or loss over a specified time period.

Focus on the income statement: The income statement is specifically designed to summarize revenues, expenses, and resulting net income or loss for a firm during a given period.

Recognize the key components of the income statement: These include revenues (sales or income generated), expenses (costs incurred), and net income or loss (the difference between revenues and expenses).

Understand the time frame: The income statement covers a specific period, such as a month, quarter, or year, making it distinct from the balance sheet, which reflects a single point in time.

Conclude that the income statement is the correct answer because it directly addresses the firm's profit or loss over a specified time period, unlike the other financial statements listed.