Video: Balance sheet / statement of financial position - Practice Questions

In this lesson, Nick Palazzolo, CPA, dives into the intricacies of the balance sheet, or the Statement of Financial Position, with a hands-on approach using practice questions. He methodically breaks down multiple-choice questions, emphasizing the importance of understanding the relationship between assets, liabilities, and owner's equity through practical examples. By showcasing how to apply the accounting equation to decipher the correct amount of equity in a corporation's balance sheet and the net book value of machinery and equipment, Nick ensures a grasp of these key concepts. Along the way, he also reinforces the understanding of terms like accumulated depreciation and allowance for doubtful accounts. Whether it's reminding about the inclusion of net income in equity or walking through the calculation of net machinery and equipment, Nick provides clear explanations to ensure these concepts stick.