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

On which financial statement would the Accumulated Depreciation account appear?

Statement of Cash Flows

Statement of Retained Earnings

Income Statement

Balance Sheet

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Verified step by step guidance

Understand the nature of the Accumulated Depreciation account: Accumulated Depreciation is a contra-asset account that reduces the value of a fixed asset on the Balance Sheet. It represents the total depreciation expense recorded over time for an asset.

Recall the purpose of the Balance Sheet: The Balance Sheet is a financial statement that reports a company's assets, liabilities, and equity at a specific point in time. It includes accounts related to the company's resources and obligations.

Identify where Accumulated Depreciation fits: Since Accumulated Depreciation is tied to fixed assets (e.g., property, plant, and equipment), it appears on the Balance Sheet as a reduction to the asset's book value.

Eliminate other financial statements: The Statement of Cash Flows tracks cash inflows and outflows, not contra-asset accounts. The Statement of Retained Earnings focuses on changes in retained earnings, and the Income Statement reports revenues and expenses, not accumulated balances.

Conclude that Accumulated Depreciation is reported on the Balance Sheet, as it directly impacts the net value of fixed assets presented in the Assets section.