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

Classified Balance Sheet Components

Financial Accounting

2. Transaction Analysis

Classified Balance Sheet Components

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Multiple Choice

On which of the four major financial statements would you find 'Net Plant and Equipment' reported?

Balance Sheet

Income Statement

Statement of Stockholders' Equity

Statement of Cash Flows

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Verified step by step guidance

Understand the purpose of each of the four major financial statements: The Balance Sheet reports a company's financial position at a specific point in time, including assets, liabilities, and equity. The Income Statement shows the company's performance over a period, including revenues and expenses. The Statement of Stockholders' Equity details changes in equity accounts. The Statement of Cash Flows explains cash inflows and outflows during a period.

Recognize that 'Net Plant and Equipment' refers to a long-term asset, which is typically reported under the 'Property, Plant, and Equipment' section of the Balance Sheet. This section includes tangible fixed assets used in operations, net of accumulated depreciation.

Recall that the Balance Sheet is structured into three main sections: Assets, Liabilities, and Stockholders' Equity. 'Net Plant and Equipment' falls under the Assets section, specifically as part of non-current or long-term assets.

Eliminate the other financial statements: The Income Statement does not report asset balances; it focuses on revenues and expenses. The Statement of Stockholders' Equity tracks changes in equity accounts, not specific asset details. The Statement of Cash Flows shows cash movements but does not list asset balances like 'Net Plant and Equipment.'

Conclude that 'Net Plant and Equipment' is reported on the Balance Sheet, as it represents a tangible asset that contributes to the company's financial position at a specific point in time.