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

Cynthia needs to share a financial snapshot of her company's assets, liabilities, and equity at a specific point in time. Which financial statement should she use?

Statement of Cash Flows

Statement of Retained Earnings

Balance Sheet

Income Statement

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Verified step by step guidance

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, detailing assets, liabilities, and equity. Other statements, such as the Income Statement, focus on performance over a period, and the Statement of Cash Flows tracks cash movements.

Identify the key elements Cynthia needs to present: She wants to share information about assets, liabilities, and equity at a specific point in time. This aligns directly with the purpose of the Balance Sheet.

Recognize why other financial statements are not suitable: The Statement of Retained Earnings focuses on changes in retained earnings, the Statement of Cash Flows tracks cash inflows and outflows, and the Income Statement reports revenues and expenses over a period. None of these provide a snapshot of financial position at a specific point in time.

Confirm the correct financial statement: Since Cynthia needs to present assets, liabilities, and equity at a specific point in time, the Balance Sheet is the appropriate choice.

Conclude with the importance of the Balance Sheet: It is a fundamental financial statement that helps stakeholders understand the company's financial health and structure at a given moment.