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- Describe the purpose and importance of financial statements.
- Explain how to format a balance sheet.
- Discuss the purpose, components and format of an income statement.
- Define the purpose of a statement of cash flows.
- Describe the significance of notes made on financial statements.
- Learn how to prepare a basic income statement and statement of retained earnings.
- Understand how to prepare a basic balance sheet and statement of cash flows.
- Explain the significance of external audits on financial statements.
- Learn how to apply the fundamental principles of accounting.
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.
10. Financial Prospectus: Definition, Components & Examples
A financial prospectus is a legal document that provides a lot of financial, company, and transaction information for prospective investors to decide whether or not they want to invest.
11. How to Write a Financial Prospectus
This lesson describes how to write a financial prospectus, along with why a prospectus is written and what its major components are. We describe those major components and give examples of each.
12. What is Cash Over and Short? - Definition & Examples
It is difficult to manage money perfectly when you are receiving cash or providing change to customers. In this lesson, you will learn about cash over and short situations.
13. Product Costs in Accounting: Definition & Examples
This lesson provides the definition and example of what product costs are, how they differentiate from period costs, and how they are used on a cost of goods manufactured schedule in relation to financial statements.
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Other chapters within the Financial Accounting: Tutoring Solution course
- Introduction to Accounting: Tutoring Solution
- Mechanics of the Accounting Cycle: Tutoring Solution
- Adjusting Accounts and Preparing Financial Statements: Tutoring Solution
- Internal Controls in Accounting: Tutoring Solution
- Merchandising Operations and Inventory in Accounting: Tutoring Solution
- Current and Long-Term Liabilities in Accounting: Tutoring Solution