Learners read about the purposes of balance sheets and income statements and then place accounts into these two financial statement categories in a drag-and-drop exercise.
Learners listen to an explanation of balance sheet basics for farm operations. They then determine how purchases should be listed in a farm record book and complete sample income and expense sheets.
Learners examine the 10 steps of the accounting cycle. The cycle begins with the analysis of source documents and ends with the post-closing trial balance and interpreting the financial information.
Learners examine the main characteristics of the four financial statements required in accounting: the income statement, the owner's equity statement, the balance sheet, and the statement of cash flow.
Financial Statements: What Are They? What Do They Mean?
Learners read about the most common forms of financial statements including balance sheets, cash flow statements, and profit and loss statements. A brief quiz completes the activity.