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

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

The purpose of the statement of shareholders' equity is to:

Show the changes in the components of shareholders' equity during a specific period.

Summarize the company's assets, liabilities, and equity at a specific date.

Present the company's cash inflows and outflows for a period.

Report the company's revenues and expenses over a period of time.

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Verified step by step guidance

Understand the purpose of the statement of shareholders' equity: It is a financial statement that shows the changes in the components of shareholders' equity during a specific period.

Identify the components of shareholders' equity: These typically include common stock, preferred stock, retained earnings, additional paid-in capital, and treasury stock.

Recognize the types of changes that can occur in shareholders' equity: These changes may include issuance of new shares, repurchase of shares (treasury stock), dividends paid, and net income or loss affecting retained earnings.

Compare the statement of shareholders' equity to other financial statements: Unlike the balance sheet, which summarizes assets, liabilities, and equity at a specific date, or the income statement, which reports revenues and expenses over a period, the statement of shareholders' equity focuses solely on equity changes.

Conclude that the correct purpose of the statement of shareholders' equity is to show the changes in the components of shareholders' equity during a specific period, as this is its primary function.