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

The owner's capital account appears on which two financial statements?

Statement of Cash Flows and Income Statement

Income Statement and Balance Sheet

Balance Sheet and Statement of Owner's Equity

Statement of Owner's Equity and Statement of Cash Flows

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Verified step by step guidance

Understand the role of the owner's capital account: It represents the owner's equity in the business, which is the residual interest in the assets of the entity after deducting liabilities.

Identify the financial statements where owner's equity is reported: The Balance Sheet and the Statement of Owner's Equity are the two financial statements that specifically deal with owner's equity.

Explain the Balance Sheet: The Balance Sheet provides a snapshot of the company's financial position at a specific point in time, showing assets, liabilities, and owner's equity. The owner's capital account is part of the equity section of the Balance Sheet.

Explain the Statement of Owner's Equity: This statement details changes in the owner's equity over a period, including contributions, withdrawals, and net income or loss. The owner's capital account is updated here based on these changes.

Clarify why the owner's capital account does not appear on other financial statements: The Statement of Cash Flows focuses on cash inflows and outflows, while the Income Statement reports revenues and expenses. Neither directly deals with the owner's capital account.