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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Why should the income statement be prepared before the other financial statements?

Because the income statement provides information about cash flows for the period.

Because the income statement lists all assets and liabilities at the end of the period.

Because the income statement is required by law to be prepared before any other statement.

Because the net income or net loss calculated on the income statement is needed to prepare the statement of retained earnings.

Previous problemNext problem

Verified step by step guidance

Understand the purpose of the income statement: The income statement summarizes a company's revenues and expenses over a specific period, resulting in either net income or net loss.

Recognize the relationship between the income statement and the statement of retained earnings: The net income or net loss calculated on the income statement is a key input for preparing the statement of retained earnings.

Learn how the statement of retained earnings is prepared: The statement of retained earnings starts with the beginning retained earnings balance, adds net income (or subtracts net loss) from the income statement, and subtracts dividends to calculate the ending retained earnings balance.

Understand the sequence of financial statement preparation: The income statement must be prepared first because its result (net income or net loss) is required to complete the statement of retained earnings, which in turn impacts the balance sheet.

Recognize the importance of the income statement in the overall financial reporting process: Preparing the income statement first ensures accurate calculation of retained earnings, which is essential for presenting a complete and accurate financial position of the company.