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 reports the financial position of a business at a specific point in time?

Balance Sheet

Income Statement

Statement of Retained Earnings

Statement of Cash Flows

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Verified step by step guidance

Step 1: Understand the purpose of each financial statement. The Balance Sheet reports the financial position of a business at a specific point in time, showing assets, liabilities, and equity. The Income Statement shows the company's performance over a period, detailing revenues and expenses. The Statement of Retained Earnings explains changes in retained earnings over a period. The Statement of Cash Flows outlines cash inflows and outflows during a period.

Step 2: Focus on the key phrase 'financial position at a specific point in time.' This phrase is crucial in identifying the correct financial statement, as it refers to the snapshot of the company's financial health.

Step 3: Recall that the Balance Sheet is the financial statement designed to provide a snapshot of the company's financial position at a specific point in time. It includes three main components: assets, liabilities, and equity.

Step 4: Eliminate the other options. The Income Statement, Statement of Retained Earnings, and Statement of Cash Flows all report financial activity over a period of time, not at a specific point in time.

Step 5: Conclude that the correct financial statement for reporting the financial position of a business at a specific point in time is the Balance Sheet.