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

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Multiple Choice

Which of the following does an income statement report?

Assets and liabilities at a specific date

Revenues and expenses for a specific period

Cash inflows and outflows for a period

Owner's equity at the end of the period

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Verified step by step guidance

Understand the purpose of an income statement: It is a financial report that summarizes a company's revenues and expenses over a specific period, showing the net income or loss for that period.

Differentiate between the options provided: Assets and liabilities are reported on the balance sheet, not the income statement. Cash inflows and outflows are reported on the cash flow statement. Owner's equity is reported on the statement of owner's equity.

Focus on the correct option: The income statement specifically reports revenues and expenses for a specific period, which helps determine the profitability of the business during that time frame.

Relate the income statement to its components: Revenues represent the income earned from business operations, while expenses are the costs incurred to generate those revenues. The difference between revenues and expenses results in net income or net loss.

Conclude the reasoning: Based on the definitions and purposes of financial statements, the correct answer is 'Revenues and expenses for a specific period,' as this aligns with the function of the income statement.