Lesson 2: General Purpose Financial Statements

Lesson Details

Video Lessons

Below are the lesson presentation videos. Each lesson is organized in a series of video segments (i.e., Part 1, Part 2, Etc.). Please watch the videos one after another in order. Upon completion, navigate to the next lesson. We strongly suggest you take the practice quizzes as we present them below to test your understanding of the content.

Part 1

Part 2

Part 3

Part 4

Know Your Words

Accounting is the language of business. To become proficient in accounting, you must understand each term associated with each accounting concept. Every lesson has a specific set of words, which will always be listed here at the end of each lesson. Simply click on a word to display the definition within our glossary. We urge you to take the neccesary time to carefully study each term before taking any assessment.

Accounts Payable

Accounting Period

Accounts Receivable


Balance Sheet

Basic Accounting Equation

Calendar Year

Capital Contributions


Cost of Goods Sold

Current Assets

Current Liabilities




Earnings Per Share


Financial Position

Financial Statements

Fiscal Year

General Purpose Financial Statements


Income Statement




Long-term Assets

Long-Term Liabilities

Net Income

Net Loss

Note Payable

Notes to the Financial Statements

Owners' Equity


Results of Operations

Retained Earnings/Deficits


Statement of Cash Flows

Statement of Owners' Equity

Statement of Retained Earnings/Deficits


Additional Lesson Resources

Below are two additional resources to help you learn the material. The most important of these resources is the Lesson Notes, which we provide via a PDF (see link below). The Lesson Notes contain the important slides of the presentation. We strongly suggest you print out this PDF and  follow along during the presentations. Making notes on the slides about key concepts will help you cement the concepts in your mind at a quicker pace. We also provide a supplemental textbook for your review. Most students NEVER use the textbook in this course; however, it is here if you want to refer to a particular concept.