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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

An income statement is best defined by which one of the following statements?

It summarizes the cash inflows and outflows from operating, investing, and financing activities during a period.

It presents the financial position of a company at a specific point in time, listing assets, liabilities, and equity.

It details the changes in shareholders' equity, including investments by owners and distributions to owners.

It reports a company's revenues and expenses over a specific period, showing the net profit or loss.

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the purpose of an income statement. An income statement is a financial report that provides a summary of a company's revenues, expenses, and resulting net profit or loss over a specific period of time.

Step 2: Compare the given options to the definition of an income statement. The correct option should align with the purpose of reporting revenues and expenses to determine net profit or loss.

Step 3: Eliminate incorrect options. For example, the option describing cash inflows and outflows relates to the cash flow statement, not the income statement. Similarly, the option about financial position refers to the balance sheet, and the option about changes in shareholders' equity pertains to the statement of changes in equity.

Step 4: Identify the correct option. The statement that matches the definition of an income statement is: 'It reports a company's revenues and expenses over a specific period, showing the net profit or loss.'

Step 5: Reinforce the concept. The income statement is also known as the profit and loss statement and is a key tool for assessing a company's financial performance during a specific time frame.