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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

Detailed information about the accounting equation is maintained in records commonly called:

The cash flow statement

The general ledger

The income statement

The trial balance

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Verified step by step guidance

Understand the accounting equation: Assets = Liabilities + Equity. This equation is fundamental to financial accounting and is used to ensure that all transactions are recorded accurately.

Learn about the general ledger: The general ledger is the primary record where detailed information about the accounting equation is maintained. It contains all accounts used by a business, including assets, liabilities, equity, revenues, and expenses.

Differentiate the general ledger from other financial records: The cash flow statement tracks cash inflows and outflows, the income statement reports revenues and expenses to calculate net income, and the trial balance is a summary of all ledger accounts to ensure debits equal credits.

Recognize the purpose of the general ledger: It serves as the central repository for all financial transactions, providing detailed and organized information that supports the preparation of financial statements.

Understand how the general ledger supports the accounting equation: Each transaction recorded in the general ledger affects at least two accounts, ensuring the accounting equation remains balanced at all times.