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 are reported in the statement of changes in stockholders' equity?

Dividends declared and paid

Inventory purchases

Cash flows from operating activities

Total revenues for the period

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Understand the purpose of the statement of changes in stockholders' equity: This financial statement tracks changes in equity accounts over a period, including contributions from owners, distributions to owners, and the company's retained earnings.

Identify the components typically reported in the statement of changes in stockholders' equity: These include dividends declared and paid, issuance or repurchase of stock, net income or loss, and adjustments for other comprehensive income.

Analyze each option provided: Dividends declared and paid directly affect retained earnings and are reported in the statement of changes in stockholders' equity. Inventory purchases, cash flows from operating activities, and total revenues for the period are not part of this statement; they are reported in other financial statements such as the income statement or cash flow statement.

Relate dividends to retained earnings: Dividends reduce retained earnings, which is a key component of stockholders' equity. This is why they are included in the statement of changes in stockholders' equity.

Conclude that the correct answer is 'Dividends declared and paid' because it directly impacts stockholders' equity, while the other options are unrelated to this specific financial statement.