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 financial statement provides a summary of money coming into and going out of the firm during a specific period?

Balance Sheet

Statement of Retained Earnings

Statement of Cash Flows

Income Statement

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Understand the purpose of each financial statement: The Balance Sheet provides a snapshot of a company's financial position at a specific point in time, including assets, liabilities, and equity. The Statement of Retained Earnings shows changes in retained earnings over a period. The Income Statement summarizes revenues and expenses to calculate net income. The Statement of Cash Flows tracks cash inflows and outflows during a specific period.

Focus on the Statement of Cash Flows: This financial statement is specifically designed to provide information about cash movements, categorizing them into operating, investing, and financing activities.

Identify the key components of the Statement of Cash Flows: Operating activities include cash flows from day-to-day business operations. Investing activities involve cash flows from the purchase or sale of long-term assets. Financing activities include cash flows related to borrowing, repaying debt, or issuing equity.

Recognize the importance of the Statement of Cash Flows: It helps stakeholders understand how a company generates and uses cash, ensuring liquidity and solvency, which are critical for the firm's financial health.

Conclude that the Statement of Cash Flows is the correct answer because it provides a detailed summary of money coming into and going out of the firm during a specific period, unlike the other financial statements which focus on different aspects of financial reporting.