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Ch 31: MTEL Business: Financial Statements & Ratios

About This Chapter

Review what you know about the types and uses of financial statements. These video lessons and self-assessment quizzes provide an overview of topics you need to know when taking the Massachusetts Tests for Educator Licensure (MTEL) Business exam.

MTEL Business: Financial Statements & Ratios - Chapter Summary

The lessons in this chapter are designed to reinforce your knowledge of or introduce you to new facts about financial statements and ratios within organizations. You will go over definitions, formats and examples. After you have viewed these lessons, you should have a firmer grasp of the following and possess the knowledge needed to answer relevant questions contained on the MTEL Business exam:

  • Identifying, preparing and relating the purposes of financial statement reports
  • Describing what is listed on balance sheets
  • Explaining what an income statement is and why it is used
  • Discussing the importance of cash flow statements
  • Detailing how to create balance sheets and cash flow statements
  • Relating how external audits are conducted
  • Defining financial statement ratios
  • Listing the types of accounts that need to be adjusted
  • Exploring the relationship between accrual accounting and financial statements

The lessons are brief but informative, and they use illustrations and examples that make learning the material fun. Accompanying quizzes can be taken as often as needed to ensure your full understanding of the topics you will be tested on when you take the MTEL Business exam.

11 Lessons in Chapter 31: MTEL Business: Financial Statements & Ratios
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 Balance Sheet: Purpose, Components & Format

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.

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

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.

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.

External Audits of Financial Statements

7. 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.

Financial Statement Ratios: Determining Company Performance

8. Financial Statement Ratios: Determining Company Performance

Have you ever wondered why the financial statements are so important to a company? In this lesson, you will learn about several financial statement ratios and how they help determine company performance.

Account Adjustments: Types, Purpose & Their Link to Financial Statements

9. Account Adjustments: Types, Purpose & Their Link to Financial Statements

Accounting is a multi-step process. In this lesson, we will discuss adjusting entries. You will learn what they are, why they are important, and see examples.

Preparing Financial Statements

10. Preparing Financial Statements

Financial statements are the most sought after reports in the financial industry. In this lesson, you will learn how to prepare them using information found on the adjusted trial balance.

Using Accrual Accounting to Make Financial Statements More Useful

11. Using Accrual Accounting to Make Financial Statements More Useful

What is the relationship between the financial statements and accrual accounting? Do you know? By the time this lesson is over, you will not only know what the relationship is between the two but also why that relationship is important.

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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Other Chapters

Other chapters within the MTEL Business (19): Practice & Study Guide course

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