About This Chapter
Financial Statements Overview - Chapter Summary
Take a closer look at this chapter as you get re-familiar with the various types of financial statements. These lessons provide an informative overview that goes through some of the most common financial statements around, including information of how these statements are used, calculation formulas, and the organizational structures of each statement type. Whether you need an overview of all of these statements or if you just need to review a few, our study materials are here for your needs. By going through the entire chapter, you will gain the skills to do the following:
- Describe the purpose and significance of financial statements
- Identify the importance of notes on financial statements
- Analyze the format and components of the balance sheet
- Check out the elements and format of an income statement
- Define the main purpose of a statement of cash flows
- Outline examples of a statement of changes in equity
Besides 24/7 access to our lessons and tools, you should also know that we give you information that has been crafted by expert instructors. Every lesson from the ground up has been designed and written by teachers who have extensive knowledge of accounting, as well as years of experience teaching learners of all levels. Therefore, our instructors know how to make lesson materials that educate beginners as well as help experienced professionals brush up on key topics. Using a mixture of video lessons, text-based lessons, assessment quizzes, and other learning tools, our instructors are ready to provide you with a comprehensive study guide.
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 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.
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.
4. 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.
5. 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.
6. Statement of Changes in Equity: Purpose & Examples
Companies must prepare a number of financial statements to comply with accounting regulations. In this lesson, you'll learn about one of these statements, the statement of changes in equity.
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