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

Which one of the following items is NOT a component of contributed capital?

Additional paid-in capital

Preferred stock

Common stock

Retained earnings

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Understand the concept of contributed capital: Contributed capital refers to the total value of funds that shareholders have directly invested in the company. It includes amounts paid for shares of stock and any additional paid-in capital.

Identify the components of contributed capital: Contributed capital typically includes common stock, preferred stock, and additional paid-in capital. These represent the funds contributed by shareholders in exchange for ownership in the company.

Clarify the role of retained earnings: Retained earnings are the accumulated profits of a company that have not been distributed as dividends. They are part of stockholders' equity but are not considered contributed capital because they are generated internally by the company rather than contributed by shareholders.

Compare the options provided: Additional paid-in capital, preferred stock, and common stock are all components of contributed capital. Retained earnings, however, are not part of contributed capital.

Conclude that retained earnings are the correct answer: Retained earnings are excluded from contributed capital because they represent internally generated funds rather than shareholder contributions.