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

Accumulated depreciation is recorded on which of the following financial statements?

Statement of Cash Flows

Income Statement

Balance Sheet

Statement of Retained Earnings

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Verified step by step guidance

Understand the concept of accumulated depreciation: Accumulated depreciation represents the total amount of depreciation expense that has been recorded for an asset over its useful life. It is a contra-asset account, meaning it reduces the value of the related asset on the financial statements.

Identify the purpose of the Balance Sheet: The Balance Sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It includes assets, liabilities, and equity.

Recognize where accumulated depreciation is reported: Accumulated depreciation is reported on the Balance Sheet under the assets section. It is subtracted from the gross value of the related fixed asset (e.g., property, plant, and equipment) to show the net book value of the asset.

Understand why accumulated depreciation is not reported on other financial statements: Accumulated depreciation is not included in the Statement of Cash Flows because it is a non-cash item. It is not part of the Income Statement because the Income Statement reports depreciation expense for the current period, not the accumulated total. It is also not part of the Statement of Retained Earnings, which focuses on changes in equity due to net income and dividends.

Conclude that the correct financial statement for accumulated depreciation is the Balance Sheet, as it provides a detailed view of assets and their net values after accounting for accumulated depreciation.