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 is typically reported on the income statement?

Owner's equity

Cash balance

Net income

Total assets

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Understand the purpose of the income statement: The income statement is a financial report that shows a company's financial performance over a specific period, primarily focusing on revenues, expenses, and resulting net income or loss.

Identify the components typically reported on the income statement: The income statement includes revenues, expenses, gains, losses, and the resulting net income or net loss. It does not include items like owner's equity, cash balance, or total assets, as these are reported on other financial statements.

Clarify the role of net income: Net income is the final result of the income statement, calculated as total revenues minus total expenses. It represents the company's profitability during the reporting period.

Distinguish between financial statements: Owner's equity is reported on the statement of owner's equity, cash balance is reported on the balance sheet, and total assets are also reported on the balance sheet. These items are not part of the income statement.

Conclude that net income is the correct answer: Based on the structure and purpose of the income statement, net income is the item that is typically reported on this financial statement.