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

The year-end balance of the owner's capital account appears on which of the following financial statements?

The Bank Reconciliation Statement

The Statement of Cash Flows

The Balance Sheet

The Income Statement

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Verified step by step guidance

Understand the purpose of the owner's capital account: It represents the owner's equity in the business, which is the residual interest in the assets of the entity after deducting liabilities.

Review the components of the Balance Sheet: The Balance Sheet is a financial statement that reports a company's assets, liabilities, and equity at a specific point in time. Owner's capital is part of the equity section.

Clarify why the owner's capital account does not appear on other financial statements: The Bank Reconciliation Statement is used to reconcile the company's bank account balance with its accounting records, and the Statement of Cash Flows shows cash inflows and outflows during a period. Neither of these statements includes equity accounts. The Income Statement reports revenues and expenses, not equity balances.

Identify the correct placement: The owner's capital account appears in the equity section of the Balance Sheet, as it reflects the owner's investment and retained earnings in the business.

Conclude the reasoning: The Balance Sheet provides a snapshot of the company's financial position, including the owner's capital account, which is essential for understanding the equity structure of the business.