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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following financial statements do managers primarily use for financial planning purposes?

The statement of cash flows from the previous year

The auditor's report

The notes to the financial statements

The budgeted (pro forma) financial statements

Previous problemNext problem

Verified step by step guidance

Understand the purpose of financial planning: Managers use financial planning to forecast future financial performance and make informed decisions about resource allocation, investments, and operations.

Identify the role of budgeted (pro forma) financial statements: These statements are forward-looking and provide estimates of future financial positions, including projected income, expenses, and cash flows.

Compare the options provided: The statement of cash flows from the previous year reflects past performance, the auditor's report provides assurance on the accuracy of financial statements, and the notes to the financial statements offer additional context but do not project future performance.

Recognize why budgeted (pro forma) financial statements are preferred: They allow managers to anticipate future financial outcomes and plan accordingly, making them the primary tool for financial planning.

Conclude that budgeted (pro forma) financial statements are the correct answer because they are specifically designed for forecasting and planning purposes.