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 items would NOT appear in an income statement?

Accounts Receivable

Sales Revenue

Interest Expense

Cost of Goods Sold

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Understand the purpose of an income statement: It is a financial report that summarizes a company's revenues, expenses, and profits over a specific period. It includes items directly related to the company's operations and financial performance.

Review the listed items: Accounts Receivable, Sales Revenue, Interest Expense, and Cost of Goods Sold. Determine whether each item is related to revenues, expenses, or profits.

Recognize that Accounts Receivable is a balance sheet item: Accounts Receivable represents money owed to the company by customers for goods or services already delivered. It is an asset and does not directly affect the income statement.

Identify the other items: Sales Revenue, Interest Expense, and Cost of Goods Sold are all components of the income statement. Sales Revenue represents income earned from selling goods or services, Interest Expense is a cost incurred for borrowing funds, and Cost of Goods Sold represents the direct costs of producing goods sold by the company.

Conclude that Accounts Receivable would NOT appear in the income statement because it is a balance sheet item, while the other items are directly related to the company's financial performance and operations.