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

Given the following partial information from the comparative balance sheet of Levi Corporation, which financial statement would most likely use this information to determine the change in cash during the period?\begin{align}\text{Assets (beginning of year):} & \quad \$120,000 \\\text{Assets (end of year):} & \quad \$135,000 \\\text{Liabilities (beginning of year):} & \quad \$50,000 \\\text{Liabilities (end of year):} & \quad \$60,000 \end{align}

Income Statement

Notes to the Financial Statements

Statement of Retained Earnings

Statement of Cash Flows

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Verified step by step guidance

Step 1: Understand the purpose of the Statement of Cash Flows. It is used to analyze the changes in cash during a specific period by categorizing cash flows into operating, investing, and financing activities.

Step 2: Recognize that the comparative balance sheet provides information about changes in assets and liabilities over time, which are essential for determining cash flow changes.

Step 3: Note that the Income Statement, Notes to the Financial Statements, and Statement of Retained Earnings do not directly focus on cash flow changes. The Income Statement focuses on revenues and expenses, the Notes provide additional disclosures, and the Statement of Retained Earnings tracks changes in equity.

Step 4: Identify that the Statement of Cash Flows uses data from the comparative balance sheet to calculate cash inflows and outflows, such as changes in working capital (current assets and liabilities).

Step 5: Conclude that the Statement of Cash Flows is the financial statement most relevant for determining the change in cash during the period, as it directly incorporates changes in assets and liabilities from the balance sheet.