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

Based on the following table showing the assets and liabilities of the Chang family in 2007 and 2008, which financial statement would best summarize the family's financial position at the end of each year?

Statement of Retained Earnings

Statement of Cash Flows

Balance Sheet

Income Statement

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Verified step by step guidance

Understand the purpose of each financial statement mentioned in the problem: The Balance Sheet summarizes the financial position of an entity at a specific point in time by listing its assets, liabilities, and equity. The Statement of Retained Earnings shows changes in retained earnings over a period. The Statement of Cash Flows details cash inflows and outflows during a period. The Income Statement reports revenues and expenses over a period to determine net income.

Identify the key elements in the problem: The table provided shows the assets and liabilities of the Chang family for 2007 and 2008. These elements are directly related to the Balance Sheet, which focuses on assets, liabilities, and equity.

Recognize that the Balance Sheet is the financial statement that summarizes the financial position of an entity at the end of a specific period. It provides a snapshot of what the entity owns (assets) and owes (liabilities), as well as the equity at a given date.

Eliminate other options: The Statement of Retained Earnings is not relevant here because the problem does not mention changes in retained earnings. The Statement of Cash Flows is not applicable because the problem does not involve cash inflows or outflows. The Income Statement is not suitable because it deals with revenues and expenses, not assets and liabilities.

Conclude that the Balance Sheet is the correct financial statement to summarize the family's financial position at the end of each year, as it directly relates to the assets and liabilities provided in the table.