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

2. Transaction Analysis

Trial Balance

Financial Accounting

2. Transaction Analysis

Trial Balance

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Multiple Choice

Financial statements are prepared from which of the following types of trial balances?

Adjusted trial balance

Post-closing trial balance

Unadjusted trial balance

Pre-closing trial balance

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Verified step by step guidance

Understand the purpose of financial statements: Financial statements are prepared to provide a summary of a company's financial performance and position during a specific period. They include the income statement, balance sheet, and statement of cash flows.

Learn the role of trial balances: Trial balances are used to ensure that the total debits equal the total credits in the accounting system, which is a fundamental principle of double-entry accounting.

Differentiate between types of trial balances: There are three main types of trial balances: unadjusted trial balance, adjusted trial balance, and post-closing trial balance. Each serves a specific purpose in the accounting cycle.

Focus on the adjusted trial balance: Financial statements are prepared using the adjusted trial balance because it includes all necessary adjustments for accruals, deferrals, and other accounting entries that ensure the financial data is accurate and complete.

Understand why other trial balances are not used: The unadjusted trial balance does not include adjustments, the post-closing trial balance is prepared after financial statements are finalized, and the term 'pre-closing trial balance' is not commonly used in accounting practice.