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 financial statement reports a company's revenues and expenses over a specific period, showing the results of its operating activities?

Statement of Changes in Equity

Statement of Cash Flows

Income Statement

Balance Sheet

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Verified step by step guidance

Understand the purpose of each financial statement: The Income Statement reports a company's revenues and expenses over a specific period, showing the results of its operating activities. The Balance Sheet provides a snapshot of the company's financial position at a specific point in time. The Statement of Cash Flows details cash inflows and outflows, and the Statement of Changes in Equity shows changes in equity accounts over a period.

Identify the key elements of the Income Statement: Revenues, expenses, and net income (or loss) are the primary components. Revenues represent the income earned from business operations, while expenses are the costs incurred to generate those revenues.

Recognize the time frame: The Income Statement covers a specific period, such as a month, quarter, or year, unlike the Balance Sheet, which is a snapshot at a single point in time.

Understand the relationship between revenues and expenses: The Income Statement calculates net income by subtracting total expenses from total revenues. This result reflects the company's profitability during the reporting period.

Confirm the correct answer: Based on the description and purpose of the financial statements, the Income Statement is the one that reports a company's revenues and expenses over a specific period, showing the results of its operating activities.