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 financial statements reports information as of a specific date?

Statement of Cash Flows

Income Statement

Balance Sheet

Statement of Retained Earnings

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Understand the purpose of each financial statement: The Statement of Cash Flows reports cash inflows and outflows over a period of time, the Income Statement shows revenues and expenses over a period of time, the Statement of Retained Earnings explains changes in retained earnings over a period of time, and the Balance Sheet provides a snapshot of the company's financial position as of a specific date.

Recognize that the Balance Sheet is unique among the financial statements because it reports the company's assets, liabilities, and equity at a specific point in time, rather than over a period.

Recall the structure of the Balance Sheet: It is divided into three main sections—Assets, Liabilities, and Equity—and follows the accounting equation:

Assets = Liabilities + Equity

Understand why the Balance Sheet is tied to a specific date: It reflects the company's financial position at the end of a reporting period, such as the last day of a month, quarter, or year.

Conclude that the Balance Sheet is the correct answer to the question because it reports information as of a specific date, unlike the other financial statements that cover a range of time.