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

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is a source of shareholders' equity?

Prepaid expenses

Short-term loans

Accounts payable

Common stock issued by the company

Previous problemNext problem

Verified step by step guidance

Understand the concept of shareholders' equity: Shareholders' equity represents the owners' claim on the assets of a company after all liabilities have been deducted. It is composed of items such as common stock, retained earnings, and additional paid-in capital.

Review the options provided: Prepaid expenses, short-term loans, accounts payable, and common stock issued by the company. Determine which of these items directly contributes to shareholders' equity.

Analyze prepaid expenses: Prepaid expenses are assets, not part of shareholders' equity. They represent payments made in advance for goods or services to be received in the future.

Analyze short-term loans and accounts payable: Both are liabilities, meaning they represent amounts owed by the company to external parties. Liabilities do not contribute to shareholders' equity.

Identify common stock issued by the company: Common stock is a direct component of shareholders' equity. When a company issues common stock, it raises capital from shareholders, which increases the equity section of the balance sheet.