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 best defines an income statement?

A financial statement that details the cash inflows and outflows from operating, investing, and financing activities.

A financial statement that summarizes changes in shareholders' equity during a period.

A financial statement that shows the company's assets, liabilities, and equity at a specific point in time.

A financial statement that reports a company's revenues and expenses over a specific period, showing the net profit or loss.

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the purpose of an income statement. An income statement is a financial report that provides a summary of a company's revenues, expenses, and resulting net profit or loss over a specific period of time.

Step 2: Compare the definitions provided in the options to the purpose of an income statement. Eliminate options that do not align with the description of an income statement.

Step 3: Option 1 describes a cash flow statement, which focuses on cash inflows and outflows from operating, investing, and financing activities. This is not the definition of an income statement.

Step 4: Option 2 refers to a statement of changes in shareholders' equity, which summarizes changes in equity during a period. This is also not the definition of an income statement.

Step 5: Option 3 describes a balance sheet, which shows the company's assets, liabilities, and equity at a specific point in time. The correct answer is the option that defines an income statement as reporting revenues and expenses over a specific period, showing net profit or loss.