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

Financial statements are prepared from a(n):

general journal

unadjusted trial balance

adjusted trial balance

bank statement

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Verified step by step guidance

Understand the purpose of financial statements: Financial statements are prepared to provide a summary of a company's financial performance and position during a specific period. They include the income statement, balance sheet, and statement of cash flows.

Recognize the role of the adjusted trial balance: The adjusted trial balance is a key document used to prepare financial statements. It includes all account balances after adjustments for accruals, deferrals, and other necessary entries have been made at the end of the accounting period.

Differentiate between the unadjusted trial balance and adjusted trial balance: The unadjusted trial balance lists account balances before adjustments, while the adjusted trial balance reflects the updated balances after adjustments. Financial statements require the adjusted trial balance to ensure accuracy.

Understand why other options are incorrect: The general journal is used to record transactions, not to prepare financial statements. A bank statement provides information about cash transactions but does not include all necessary accounts for financial statement preparation.

Conclude that financial statements are prepared from the adjusted trial balance because it ensures all accounts are accurate and complete, reflecting the true financial position and performance of the company.