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Ch 28: Financial Monitoring & Control

About This Chapter

This chapter on financial monitoring and control can serve as a fantastic preparation tool for an upcoming test. Engaging lessons, mini quizzes and a practice exam can quickly and effectively boost your knowledge of different types of financial reports and ensure you're ready for questions on the test.

Financial Monitoring & Control - Chapter Summary

Enhance your comprehension of financial monitoring and control with help from these entertaining lessons. This chapter examines how financial statements and reports are used to monitor and control various aspects of business. Top instructors make these lessons easy and fun to review. Upon completion, you will be able to:

  • Describe the purpose, components and format of an income statement
  • Define the statement of retained earnings
  • Provide details about the components, format and purpose of the balance sheet
  • Discuss the format and purpose of the statement of cash flows
  • Detail the process of preparing a basic income statement and statement of retained earnings
  • Explain how to prepare a basic balance sheet and statement of cash flows
  • List and describe limitations of financial reports

Don't let a busy schedule stop you from studying financial monitoring and control. Lessons in this chapter are available around-the-clock and can be accessed via any computer or mobile device anywhere you can secure an Internet connection. Choose the lessons you wish to view, and visit them as many times as needed to boost your knowledge of this subject. When ready, check your understanding by taking short lesson quizzes and a practice chapter exam.

7 Lessons in Chapter 28: Financial Monitoring & Control
Test your knowledge with a 30-question chapter practice test
What Is an Income Statement? - Purpose, Components & Format

1. 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.

Statement of Retained Earnings: Definition, Formula & Example

2. Statement of Retained Earnings: Definition, Formula & Example

Retained earnings are a critical part of the business life cycle. The statement of retained earnings calculates not only the cumulative amount of earnings but also the changes that have affected that amount during the past year.

The Balance Sheet: Purpose, Components & Format

3. 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.

The Statement of Cash Flows: Purpose, Format & Examples

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.

Preparing the Basic Income Statement and Statement of Retained Earnings

5. 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.

How to Prepare the Basic Balance Sheet and Statement of Cash Flows

6. 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.

Limitations of Financial Reports

7. Limitations of Financial Reports

Users rely on financial reports to make decisions about businesses, but these reports do not always provide all the relevant information. In this lesson, you will learn about the limitations of financial reports.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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