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

5. Inventory

Financial Statement Effects of Inventory Costing Methods

Financial Accounting

5. Inventory

Financial Statement Effects of Inventory Costing Methods

Next problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Accumulated depreciation is reported on which of the following financial statements?

Statement of Stockholders' Equity

Statement of Cash Flows

Income Statement

Balance Sheet

Next problem

Verified step by step guidance

Understand the concept of accumulated depreciation: Accumulated depreciation is the total amount of depreciation expense that has been recorded for an asset over its useful life. It is a contra-asset account, meaning it reduces the value of the related asset on the financial statements.

Identify the financial statement where accumulated depreciation is reported: Accumulated depreciation is reported on the Balance Sheet because it is directly tied to the value of long-term assets, such as property, plant, and equipment.

Learn how accumulated depreciation is presented: On the Balance Sheet, accumulated depreciation is subtracted from the gross value of the related asset to calculate the net book value of the asset. For example, if an asset has a gross value of $100,000 and accumulated depreciation of $30,000, the net book value would be $70,000.

Understand why accumulated depreciation is not reported on other financial statements: Accumulated depreciation is not reported on the Statement of Stockholders' Equity, Statement of Cash Flows, or Income Statement because it is not directly related to equity changes, cash flows, or revenues/expenses. Instead, it is a balance sheet item that reflects the long-term reduction in asset value.

Review the role of accumulated depreciation in financial analysis: Accumulated depreciation helps stakeholders understand the age and usage of assets, as well as the company's investment in maintaining or replacing those assets. It is an important component of asset management and financial reporting.