Ch 28: ORELA Business Education: Financial Statements

About This Chapter

Review the ins and outs of financial statements through video lessons and self-assessment quizzes. The chapter will guide you through various aspects of financial statements that the ORELA Business Education exam will cover.

ORELA Business Education: Financial Statements - Chapter Summary

This chapter will refresh your knowledge of financial statements and provide in-depth lessons on several related materials and actions, allowing you to both study the informational aspects of financial statements and prepare for questions regarding their application. The videos go over the following topics that you can expect to encounter ORELA Business Education exam:

  • Defining financial statements
  • The importance of balance sheets
  • Income statements
  • Cash flow statements
  • External audits
  • Financial statement ratios
  • Accrual accounting

Concepts discussed in the lessons are defined before their application is demonstrated, allowing you to familiarize yourself with them before putting them into action in the exam. Knowing these different forms and uses of accounting and financial statements will ensure you have your bases covered going into the exam, as well as help you navigate their real-life application.

ORELA Business Education: Financial Statements Chapter Objectives

The Oregon Educator Business Education Licensure Assessment is a computer-based test comprised of 150 multiple-choice questions geared towards confirming instructor knowledge of national business learning standards. A passing score is 234, with approximately 19% of the test score coming from accounting, personal financial management, and quantitative analysis questions.

By using this study guide, you'll be prepared to answer questions in this subject area about the forms of and processes involved with financial statements and accounting for both business and personal finance matters.

11 Lessons in Chapter 28: ORELA Business Education: Financial Statements
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

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Other Chapters

Other chapters within the ORELA Business Education: Practice & Study Guide course

Support