Ch 33: WEST Business & Marketing Education: Financial Statements

About This Chapter

Study with us to review the purpose and components of financial statements. This chapter can help you prepare for questions on balance sheets, income statements and more on the WEST Business & Marketing Education exam.

WEST Business & Marketing Education: Financial Statements - Chapter Summary

Review information about the purpose, formats and components of common financial statements used in business through the lessons in this chapter. You should be prepared to answer questions on these topics after watching these videos:

  • Financial statement overviews
  • Balance sheets
  • Income statements
  • Statements of cash flow
  • Notes on financial statements
  • Preparing income and retained earnings statements
  • Creating balance sheets and cash flow statements
  • External audits
  • Basic accounting principles

This chapter is divided into multiple lessons that cover different types of financial documents; each lesson includes a short video, transcript and follow-up quiz. You can watch these lessons on your own schedule and the instructors are available for questions, should the need arise.

9 Lessons in Chapter 33: WEST Business & Marketing 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.

The Purpose of Notes on 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.

Preparing the Basic Income Statement and Statement of Retained Earnings

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.

How to Prepare the Basic Balance Sheet and Statement of Cash Flows

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.

External Audits of Financial Statements

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.

The Fundamental Principles of Accounting

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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