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 statement of changes in stockholders’ equity shows changes in which of the following accounts?

Inventory and cost of goods sold

Accounts payable and accrued expenses

Cash and accounts receivable

Common stock and retained earnings

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Verified step by step guidance

Understand the purpose of the statement of changes in stockholders' equity: It is a financial statement that summarizes the changes in equity accounts over a specific period, including contributions from shareholders, distributions to shareholders, and retained earnings adjustments.

Identify the key equity accounts: Stockholders' equity typically includes accounts such as common stock, preferred stock, additional paid-in capital, retained earnings, and treasury stock.

Recognize that inventory, cost of goods sold, accounts payable, accrued expenses, cash, and accounts receivable are not equity accounts. These are part of assets, liabilities, or expenses, and are reported on other financial statements like the balance sheet or income statement.

Focus on the correct equity accounts: Common stock represents the ownership interest of shareholders, and retained earnings reflect the cumulative net income retained by the company after dividends are paid.

Conclude that the statement of changes in stockholders' equity specifically tracks changes in equity accounts such as common stock and retained earnings, as these are directly related to the ownership and profitability of the company.