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

2. Transaction Analysis

Classified Balance Sheet Components

Financial Accounting

2. Transaction Analysis

Classified Balance Sheet Components

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Multiple Choice

Which of the following is typically presented first in the equity section of a classified balance sheet?

Treasury Stock

Retained Earnings

Additional Paid-in Capital

Common Stock

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Verified step by step guidance

Understand the structure of the equity section in a classified balance sheet. The equity section typically includes components such as Common Stock, Additional Paid-in Capital, Retained Earnings, and Treasury Stock.

Recognize that the order of presentation in the equity section is standardized. Common Stock is usually presented first because it represents the ownership interest in the company and is a fundamental component of equity.

Additional Paid-in Capital is presented after Common Stock. It represents the amount shareholders paid above the par value of the stock.

Retained Earnings follows Additional Paid-in Capital. It reflects the cumulative net income retained by the company after dividends are distributed.

Treasury Stock is presented last in the equity section. It represents the company's own stock that has been repurchased and is held in its treasury, reducing total equity.