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 best and fully describes a general ledger?

A complete record of all accounts and their balances used by a company to prepare financial statements.

A detailed listing of all transactions affecting cash during a period.

A report showing the financial position of a company at a specific point in time.

A summary of a company's revenues and expenses over a specific period.

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Verified step by step guidance

Step 1: Understand the concept of a general ledger. A general ledger is a complete record of all accounts and their balances, which is used by a company to prepare financial statements. It serves as the central repository for accounting data and includes all transactions recorded in the company's accounting system.

Step 2: Analyze the options provided in the question. Each option describes a different accounting concept: (1) A complete record of all accounts and their balances, (2) A detailed listing of transactions affecting cash, (3) A report showing financial position at a specific point, and (4) A summary of revenues and expenses over a period.

Step 3: Compare the definition of a general ledger to the options. The general ledger aligns with the first option, as it is the complete record of all accounts and their balances, not limited to cash transactions, financial position, or revenues and expenses.

Step 4: Eliminate incorrect options. The second option refers to a cash flow statement, the third option describes a balance sheet, and the fourth option refers to an income statement. These are distinct financial reports and not the general ledger.

Step 5: Conclude that the correct answer is the first option, as it fully describes the purpose and function of a general ledger in financial accounting.