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 must be included in the annual reports of public companies?

Marketing plans for the next fiscal year

Personal tax returns of executives

Statement of Financial Position (Balance Sheet)

Internal audit reports

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Verified step by step guidance

Understand the context: Public companies are required to prepare and disclose specific financial statements as part of their annual reports to comply with regulatory requirements and provide transparency to stakeholders.

Identify the key financial statements: The primary financial statements that must be included in the annual reports of public companies are the Statement of Financial Position (Balance Sheet), Income Statement, Statement of Cash Flows, and Statement of Changes in Equity.

Focus on the Statement of Financial Position: The Statement of Financial Position (commonly referred to as the Balance Sheet) provides a snapshot of the company's financial position at a specific point in time, showing assets, liabilities, and equity.

Eliminate irrelevant options: Marketing plans for the next fiscal year, personal tax returns of executives, and internal audit reports are not mandatory components of the annual report. These items may be used internally but are not required for public disclosure.

Conclude: The Statement of Financial Position (Balance Sheet) is a mandatory component of the annual report for public companies, as it is essential for stakeholders to assess the company's financial health.