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 items appear on the Statement of Stockholders' Equity?

Dividends declared

Cash flows from operating activities

Net income

Total liabilities

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Verified step by step guidance

Step 1: Understand the purpose of the Statement of Stockholders' Equity. It is a financial statement that shows changes in the equity section of the balance sheet over a specific period. It includes items such as retained earnings, common stock, additional paid-in capital, and dividends declared.

Step 2: Identify the items that are relevant to the Statement of Stockholders' Equity. Dividends declared and net income are directly related to changes in stockholders' equity. Dividends reduce retained earnings, while net income increases retained earnings.

Step 3: Exclude items that are not part of the Statement of Stockholders' Equity. Cash flows from operating activities belong to the Statement of Cash Flows, and total liabilities are part of the Balance Sheet, not the Statement of Stockholders' Equity.

Step 4: Recognize how each relevant item impacts the Statement of Stockholders' Equity. Dividends declared are subtracted from retained earnings, while net income is added to retained earnings. These changes are reflected in the equity section of the statement.

Step 5: Summarize the items that appear on the Statement of Stockholders' Equity. Based on the analysis, the correct items are dividends declared and net income, as they directly affect stockholders' equity.