Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

The value of what stockholders own in a firm minus any liabilities is called:

Stockholders' Equity

Total Assets

Net Income

Retained Earnings

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Verified step by step guidance

Step 1: Understand the concept of Stockholders' Equity. Stockholders' Equity represents the residual interest in the assets of a company after deducting liabilities. It is essentially what the owners of the company own.

Step 2: Recall the accounting equation: Assets = Liabilities + Stockholders' Equity. Rearranging this equation, Stockholders' Equity = Assets - Liabilities.

Step 3: Analyze the options provided in the problem: 'Total Assets,' 'Net Income,' 'Retained Earnings,' and 'Stockholders' Equity.' Compare each term to the definition of Stockholders' Equity.

Step 4: Eliminate incorrect options. 'Total Assets' refers to everything the company owns, not the residual value. 'Net Income' is the profit earned during a period, not the equity. 'Retained Earnings' is a component of Stockholders' Equity but not the entire equity.

Step 5: Conclude that the correct answer is 'Stockholders' Equity,' as it matches the definition of the value of what stockholders own in a firm minus any liabilities.