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

One of the key financial statements prepared in the fifth step of the accounting cycle is a(n):

Income Statement

Bank Reconciliation

Trial Balance

General Journal

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Verified step by step guidance

Understand the accounting cycle: The accounting cycle consists of several steps, including identifying transactions, recording them, posting to the ledger, preparing a trial balance, and creating financial statements.

Recognize the purpose of financial statements: Financial statements summarize the financial performance and position of a business. The key financial statements include the Income Statement, Balance Sheet, and Cash Flow Statement.

Identify the fifth step in the accounting cycle: After preparing the trial balance, the next step is to create financial statements. The Income Statement is typically prepared first to show the company's revenues, expenses, and net income or loss for a specific period.

Clarify the role of the Income Statement: The Income Statement provides a detailed view of the company's profitability by listing revenues and subtracting expenses to calculate net income or loss.

Compare the options provided: The Income Statement is the correct answer because it is one of the key financial statements prepared in the fifth step of the accounting cycle. The other options (Bank Reconciliation, Trial Balance, General Journal) are not financial statements but are part of earlier steps or supporting processes in the accounting cycle.