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 company's ledger (or general ledger) is:

a document used to record only cash transactions

a summary of the company's revenues and expenses for a specific period

a complete record of all the accounts and their balances used by the company

a report showing the company's assets, liabilities, and equity at a specific date

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Verified step by step guidance

Understand the concept of a ledger: A ledger, also known as a general ledger, is a complete record of all the accounts and their balances used by a company. It serves as the central repository for financial data, summarizing transactions recorded in the journal.

Differentiate the ledger from other financial documents: Unlike a document used to record only cash transactions or a summary of revenues and expenses, the ledger includes all accounts such as assets, liabilities, equity, revenues, and expenses.

Recognize the purpose of the ledger: The ledger is used to track the financial position of the company by maintaining detailed records of all transactions affecting each account.

Understand the relationship between the ledger and financial statements: The ledger provides the data necessary to prepare financial statements, such as the balance sheet (showing assets, liabilities, and equity) and the income statement (summarizing revenues and expenses).

Review the correct answer: Based on the explanation, the correct answer is 'a complete record of all the accounts and their balances used by the company,' as this accurately describes the function and scope of the ledger.