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 statements about the balance sheet is correct?

The balance sheet reports a company's financial position at a specific point in time.

The balance sheet is also known as the income statement.

The balance sheet lists assets, liabilities, and equity.

The balance sheet shows only the revenues and expenses for a period.

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Verified step by step guidance

Step 1: Understand the purpose of the balance sheet. The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It lists the company's assets, liabilities, and equity.

Step 2: Differentiate the balance sheet from other financial statements. Unlike the income statement, which reports revenues and expenses over a period, the balance sheet focuses on the company's financial position at a single moment.

Step 3: Identify the key components of the balance sheet. The balance sheet is divided into three main sections: assets (resources owned by the company), liabilities (obligations owed by the company), and equity (the residual interest in the assets after deducting liabilities).

Step 4: Clarify common misconceptions. The balance sheet is not the same as the income statement, and it does not show revenues and expenses for a period. Instead, it provides a detailed listing of what the company owns and owes at a specific date.

Step 5: Review the correct statements. Based on the explanation, the correct statements are: 'The balance sheet reports a company's financial position at a specific point in time' and 'The balance sheet lists assets, liabilities, and equity.'