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

Revenues and expenses are reported in the:

Income Statement

Balance Sheet

Statement of Cash Flows

Statement of Retained Earnings

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Understand the purpose of each financial statement: The Income Statement reports revenues and expenses to show the company's profitability over a specific period. The Balance Sheet provides a snapshot of the company's financial position, including assets, liabilities, and equity. The Statement of Cash Flows details cash inflows and outflows, while the Statement of Retained Earnings explains changes in retained earnings over time.

Identify the key components of revenues and expenses: Revenues represent the income earned from business operations, while expenses are the costs incurred to generate those revenues. These elements are directly related to the company's profitability.

Recognize that the Income Statement is specifically designed to report revenues and expenses. It calculates net income or loss by subtracting total expenses from total revenues for the reporting period.

Eliminate the other options: The Balance Sheet does not report revenues and expenses; it focuses on assets, liabilities, and equity. The Statement of Cash Flows tracks cash movements, not profitability. The Statement of Retained Earnings shows changes in retained earnings, which are influenced by net income but do not directly report revenues and expenses.

Conclude that revenues and expenses are reported in the Income Statement, as it is the financial statement dedicated to summarizing the company's financial performance over a specific period.