Ch 2: Financial Statements & Balance Sheets

About This Chapter

In this chapter, follow the video lessons to learn more about financial statements and balance sheets. After you finish, take the multiple-choice quizzes to review the material.

Financial Statements & Balance Sheets - Chapter Summary and Learning Objectives

Financial statements are crucial in business. Accounting managers play an important role in preparing financial statements. In this chapter, instructors guide you through the preparation processes for the four financial reports that must be developed in an accounting cycle. Follow these engaging video lessons and take the quizzes at the end of each lesson to brush-up on financial statements and balance sheets. In these lessons, you can discover information like:

  • What financial statements are
  • How to prepare financial reports, including basic income statements and statements of retained earnings
  • What different financial reports are and their roles
  • Ways that the classified balance sheet is used

Video Objective
What Are Financial Statements? - Definition, Purpose & Importance Explain the role of financial statements and who uses them.
Preparing the Basic Income Statement and Statement of Retained Earnings Compare the most basic income statements and understand how they are prepared.
What Is an Income Statement? - Purpose, Components & Format Dissect the income statement to better understand its role in the financial statements.
Statement of Retained Earnings: Definition, Formula & Example Summarize the statement of retained earnings and why it is important to the business life cycle.
How to Prepare the Basic Balance Sheet and Statement of Cash Flows Evaluate how basic balance sheets and statement of cash flows are prepared.
The Balance Sheet: Purpose, Components & Format Outline the information included on the balance sheet.
Classified Balance Sheet: Definition & Example Distinguish how the classified balance sheet is used and learn its components.

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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