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 is typically included in a business report to show a company's financial position at a specific point in time?

Statement of Cash Flows

Balance Sheet

Statement of Retained Earnings

Income Statement

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the purpose of each financial statement. The Statement of Cash Flows shows the inflows and outflows of cash over a period of time, the Income Statement reports the company's performance (revenues and expenses) over a period, and the Statement of Retained Earnings explains changes in retained earnings during a period. The Balance Sheet, however, provides a snapshot of the company's financial position at a specific point in time.

Step 2: Recall the structure of the Balance Sheet. It is divided into three main sections: Assets, Liabilities, and Equity. Assets represent what the company owns, liabilities represent what the company owes, and equity represents the residual interest of the owners.

Step 3: Recognize that the Balance Sheet adheres to the accounting equation: \( \text{Assets} = \text{Liabilities} + \text{Equity} \). This equation ensures that the financial position is balanced and accurately reflects the company's resources and obligations.

Step 4: Note that the Balance Sheet is prepared as of a specific date, unlike other financial statements that cover a period of time. This characteristic makes it the appropriate statement to show the financial position at a specific point in time.

Step 5: Conclude that the Balance Sheet is the correct answer to the question, as it is specifically designed to provide a snapshot of the company's financial position at a given moment.