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.

In this learning activity you'll calculate the difference in the total cost of a new car when using cash and when paying for the car with a 60-month loan.

Learners examine the accounting equation and view examples of how account items and figures are included in each part of the equation.

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.