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 is listed on the pro forma balance sheet?

Cost of Goods Sold

Accounts Receivable

Dividends Declared

Sales Revenue

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Verified step by step guidance

Step 1: Understand the purpose of a pro forma balance sheet. A pro forma balance sheet is a financial statement that projects the financial position of a company at a future date, based on assumptions and estimates. It includes assets, liabilities, and equity accounts.

Step 2: Review the components of a balance sheet. A balance sheet is divided into three main sections: assets, liabilities, and equity. Accounts Receivable is classified as a current asset, while Cost of Goods Sold, Dividends Declared, and Sales Revenue are not part of the balance sheet but are part of the income statement or statement of retained earnings.

Step 3: Identify the correct classification for each option provided. Accounts Receivable is listed under current assets on the balance sheet. Cost of Goods Sold and Sales Revenue are part of the income statement, and Dividends Declared is part of the statement of retained earnings.

Step 4: Confirm that Accounts Receivable is the correct answer. Since it is a current asset, it is listed on the pro forma balance sheet, while the other options are not.

Step 5: Conclude that understanding the distinction between financial statements (balance sheet, income statement, and statement of retained earnings) is essential for correctly identifying where each account is reported.