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 displays the revenues and expenses of a company for a period of time?

Balance Sheet

Statement of Cash Flows

Income Statement

Statement of Retained Earnings

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Verified step by step guidance

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

Focus on the Income Statement: It is specifically designed to summarize the company's revenues and expenses for a given period, providing insight into profitability.

Revenues represent the income earned from the company's operations, such as sales or services provided, while expenses are the costs incurred to generate those revenues.

The Income Statement calculates net income or net loss by subtracting total expenses from total revenues. This result reflects the company's financial performance during the period.

Recognize that the Income Statement is the correct answer because it directly addresses the question of displaying revenues and expenses for a period of time.