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

1. Which financial statement is typically prepared and presented first in the sequence of financial statements?

Income Statement

Statement of Cash Flows

Statement of Retained Earnings

Balance Sheet

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Verified step by step guidance

Understand the sequence of financial statements: Financial statements are typically prepared in a specific order because the information from one statement often feeds into the next.

Step 1: Begin with the Income Statement. The Income Statement reports the company's revenues and expenses, ultimately calculating the net income or net loss for the period. This net income figure is essential for preparing subsequent statements.

Step 2: Use the net income from the Income Statement to prepare the Statement of Retained Earnings. This statement shows how the net income and dividends affect the retained earnings balance over the period.

Step 3: Prepare the Balance Sheet next. The retained earnings figure from the Statement of Retained Earnings is included in the equity section of the Balance Sheet, which provides a snapshot of the company's financial position at a specific point in time.

Step 4: Finally, prepare the Statement of Cash Flows. This statement details the cash inflows and outflows from operating, investing, and financing activities, and it uses information from the other financial statements to reconcile the change in cash.