Ch 1: Financial Statements Overview

About This Chapter

Examine this chapter for an overview of financial statements. If you need a more flexible way to study the purposes and formats of various financial statements, our 100% online platform gives you around-the-clock access from any location that has wi-fi, so you can study at home or while on the go.

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.

6 Lessons in Chapter 1: Financial Statements Overview
Test your knowledge with a 30-question chapter practice test
What Are Financial Statements? - Definition, Purpose & Importance

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.

The Purpose of Notes on Financial Statements

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.

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.

What Is an Income Statement? - Purpose, Components & Format

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.

The Statement of Cash Flows: Purpose, Format & Examples

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.

Statement of Changes in Equity: Purpose & Examples

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.

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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