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 two financial statements are typically prepared directly from the information on the worksheet at the end of an accounting period?

Income Statement and Statement of Cash Flows

Statement of Cash Flows and Balance Sheet

Income Statement and Balance Sheet

Statement of Retained Earnings and Statement of Cash Flows

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Verified step by step guidance

Understand the purpose of the worksheet: At the end of an accounting period, the worksheet is used to summarize all financial data, including trial balances, adjustments, and updated account balances. This serves as the foundation for preparing financial statements.

Identify the financial statements that are directly prepared from the worksheet: The Income Statement and Balance Sheet are derived directly from the worksheet because they summarize the company's revenues, expenses, assets, liabilities, and equity.

Explain the Income Statement: The Income Statement is prepared using the revenue and expense accounts from the worksheet. It shows the company's financial performance over a specific period, including net income or net loss.

Explain the Balance Sheet: The Balance Sheet is prepared using the asset, liability, and equity accounts from the worksheet. It provides a snapshot of the company's financial position at a specific point in time.

Clarify why other statements are not directly prepared: The Statement of Cash Flows and Statement of Retained Earnings require additional information beyond the worksheet, such as cash transactions and changes in retained earnings, which are not fully detailed in the worksheet.