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 best describes a ledger that contains all accounts needed to prepare financial statements?

Trial balance

Subsidiary ledger

Chart of accounts

General ledger

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Verified step by step guidance

Understand the concept of a ledger: A ledger is a book or collection of accounts in which account transactions are recorded. It serves as the central repository for all financial data.

Learn about the general ledger: The general ledger is the primary ledger that contains all accounts necessary to prepare financial statements, including assets, liabilities, equity, revenues, and expenses.

Differentiate between the options: Trial balance is a summary of balances from the general ledger, subsidiary ledger contains detailed information for specific accounts (e.g., accounts receivable), and chart of accounts is a list of all account names and numbers used in the accounting system.

Recognize the purpose of the general ledger: It consolidates all financial transactions and balances for the preparation of financial statements, making it the most comprehensive ledger.

Conclude that the general ledger is the correct answer because it contains all accounts needed to prepare financial statements, unlike the other options which serve specific or supplementary purposes.