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

Which of the following financial statements shows a firm's financial position on a particular date?

Statement of Retained Earnings

Statement of Cash Flows

Balance Sheet

Income Statement

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the purpose of each financial statement mentioned in the problem. The Balance Sheet, Statement of Retained Earnings, Statement of Cash Flows, and Income Statement each serve different purposes in financial reporting.

Step 2: Recall that the Balance Sheet is specifically designed to show a firm's financial position at a particular point in time. It includes assets, liabilities, and equity, providing a snapshot of the company's financial health.

Step 3: Contrast the Balance Sheet with the other financial statements. For example, the Income Statement shows the company's performance over a period of time, detailing revenues and expenses. The Statement of Cash Flows tracks cash inflows and outflows during a period, and the Statement of Retained Earnings explains changes in retained earnings over a period.

Step 4: Focus on the key phrase 'financial position on a particular date.' This phrase directly aligns with the purpose of the Balance Sheet, as it provides information about what the company owns (assets), owes (liabilities), and the residual interest (equity) at a specific date.

Step 5: Conclude that the correct answer is the Balance Sheet, as it is the financial statement that fulfills the requirement of showing a firm's financial position on a particular date.