About This Chapter
Below is a sample breakdown of the Financial Statements in Accounting chapter into a 5-day school week. Based on the pace of your course, you may need to adapt the lesson plan to fit your needs.
|Day||Topics||Key Terms and Concepts Covered|
|Monday||Statements: Part I||Statement of retained earnings, balance sheets, income statement, financial statements, assets, owner's equity, liability, Generally Accepted Accounting Principles (GAAP), and Revenue - Expenses = Net Income|
|Tuesday||Statements: Part II||Statement of cash flows, types of activities, net income, the Financial Accounting Standards Board (FASB), accrual basis vs. cash basis, types of events, intangibles, consolidated financial statements, and contingent liability|
|Wednesday||Statement preparation||Total Revenue - Total Expenses = Net Income or Net Loss, statement of retained earnings formula, and applying the GAAP to preparing different types of statements|
|Thursday||Audits||Typical audit process, auditor, Public Company Accounting Oversight Board (PCAOB), regulators, investors, company leaders, and the purposes for conducting audits|
|Friday||Fundamental principles||Objectivity, arm's length transactions, going-concern, separate entity principle, cost, revenue recognition principle, and monetary measurement concept|
1. What Are Financial Statements? - Definition, Purpose & Importance
Financial statements are big players in the world of accounting. In this lesson, you will be introduced to each of the financial statements. You will also learn what their role is in the accounting industry, who they are important to and why they are important.
2. The Balance Sheet: Purpose, Components & Format
There are four financial reports that make up a group known as the financial statements. We will take a walk with one of those reports - the balance sheet - and learn what it is, what items are included on it and what its role in the group is.
3. What Is an Income Statement? - Purpose, Components & Format
There are four financial reports that are created during the accounting cycle. These four reports make up what is commonly known as the financial statements. In this lesson, we will focus our attention on the income statement. We will learn what the income statement is, what its role in the financial statements is and why it is important in accounting.
4. The Statement of Cash Flows: Purpose, Format & Examples
There are four financial reports that are required in financial statements. In this lesson, you will learn about the fourth and final report - the statement of cash flows. You'll learn what the makeup of the statement is, its purpose, and why it is important to users of the financial statements.
5. The Purpose of Notes on Financial Statements
Financial statements are very important in accounting and finance. In this lesson, you will learn about notes to the financial statements, what information they may give, and why they are important to financial statement users.
6. Preparing the Basic Income Statement and Statement of Retained Earnings
Preparing financial statements can be tricky. In this lesson, we are going to talk about how to prepare the first two basic financial statements: the income statement and the statement of retained earnings.
7. How to Prepare the Basic Balance Sheet and Statement of Cash Flows
There are four reports that make up the financial statements. In this lesson, we will talk about how to create the balance sheet and the statement of cash flows. You will learn how to format the reports, as well as what information is reported on them.
8. External Audits of Financial Statements
Financial statements are one of the most heavily relied upon group of reports in the business world, and they must be accurate and reliable. In this lesson, you'll learn about financial statement audits, who performs them, and why they are important.
9. The Fundamental Principles of Accounting
Accounting is an art, but just as with any form of art, you need the right tools to make your masterpiece. For accounting, those tools are the seven major accounting principles. In this lesson, you will learn what those principles are and what they are used for.
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Other chapters within the Financial Accounting Syllabus Resource & Lesson Plans course
- Introduction to Accounting Lesson Plans
- Mechanics of the Accounting Cycle Lesson Plans
- Adjusting Accounts and Preparing Financial Statements Lesson Plans
- Internal Controls in Accounting Lesson Plans
- Merchandising Operations and Inventory in Accounting Lesson Plans
- Receivables in Accounting Lesson Plans
- Current and Long-Term Liabilities in Accounting Lesson Plans