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

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Multiple Choice

Another common term for stockholders' equity is:

Total assets

Net income

Owner's equity

Retained earnings

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Understand the concept of stockholders' equity: Stockholders' equity represents the owners' claim on the assets of a corporation after all liabilities have been deducted. It is essentially the residual interest in the company.

Recognize that stockholders' equity is also referred to as 'owner's equity' in the context of sole proprietorships or partnerships. In corporations, the term 'stockholders' equity' is used because ownership is divided among shareholders.

Differentiate stockholders' equity from other terms in the problem: Total assets refer to everything the company owns, net income refers to the profit earned during a specific period, and retained earnings are a component of stockholders' equity representing accumulated profits not distributed as dividends.

Identify that the correct synonym for stockholders' equity in this context is 'owner's equity,' as it represents the ownership interest in the company.

Conclude that while stockholders' equity and owner's equity are similar concepts, the terminology varies depending on the type of business entity (corporation vs. sole proprietorship/partnership).