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

Which of the following best describes the information reported in the statement of stockholders' equity?

It presents the company's assets, liabilities, and stockholders' equity at a specific point in time.

It reports the company's revenues and expenses to calculate net income for the period.

It summarizes the cash inflows and outflows from operating, investing, and financing activities during the period.

It shows the changes in each component of stockholders' equity, such as common stock, retained earnings, and dividends, over a specific period.

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Verified step by step guidance

Understand the purpose of the statement of stockholders' equity: It is a financial statement that provides details about changes in the components of stockholders' equity over a specific period.

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

Recognize the types of changes reported: The statement shows increases or decreases in stockholders' equity components due to transactions such as issuing stock, earning net income, or paying dividends.

Compare the statement of stockholders' equity to other financial statements: Unlike the balance sheet, which shows assets, liabilities, and equity at a specific point in time, or the income statement, which reports revenues and expenses, this statement focuses solely on equity changes.

Conclude that the correct description is: 'It shows the changes in each component of stockholders' equity, such as common stock, retained earnings, and dividends, over a specific period.'