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

The ending balance in cash is reported in which financial statement(s)?

Balance Sheet only

Statement of Cash Flows only

Income Statement only

Both the Balance Sheet and the Statement of Cash Flows

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Verified step by step guidance

Understand the role of the Balance Sheet: The Balance Sheet provides a snapshot of a company's financial position at a specific point in time, including assets, liabilities, and equity. Cash is reported as part of the assets section under 'Current Assets.'

Understand the role of the Statement of Cash Flows: The Statement of Cash Flows details the inflows and outflows of cash during a specific period, categorized into operating, investing, and financing activities. The ending cash balance is reconciled with the cash balance reported on the Balance Sheet.

Recognize the connection between the two statements: The ending cash balance from the Statement of Cash Flows must match the cash balance reported on the Balance Sheet for the same period. This ensures consistency and accuracy in financial reporting.

Eliminate incorrect options: The Income Statement does not report cash balances. It focuses on revenues, expenses, and net income over a period, not the ending cash balance.

Conclude that the ending balance in cash is reported in both the Balance Sheet and the Statement of Cash Flows, as these two statements are interconnected and provide complementary information about a company's cash position.