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 Changes in Stockholders' Equity?

Dividends declared and paid

Cash flows from operating activities

Total assets at year-end

Total revenues for the period

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Verified step by step guidance

Step 1: Understand the purpose of the Statement of Changes in Stockholders' Equity. This financial statement shows changes in equity accounts over a period, including contributions from owners, distributions to owners, and the company's retained earnings.

Step 2: Identify the items that directly affect stockholders' equity. These typically include dividends declared and paid, issuance or repurchase of stock, and net income or loss for the period.

Step 3: Analyze each option provided in the problem: (a) Dividends declared and paid directly reduce retained earnings, which is part of stockholders' equity, so this item appears on the statement. (b) Cash flows from operating activities belong to the Statement of Cash Flows, not the Statement of Changes in Stockholders' Equity. (c) Total assets at year-end are reported on the Balance Sheet, not on the Statement of Changes in Stockholders' Equity. (d) Total revenues for the period are part of the Income Statement and indirectly affect stockholders' equity through net income but are not directly listed on the Statement of Changes in Stockholders' Equity.

Step 4: Conclude that the correct item appearing on the Statement of Changes in Stockholders' Equity is 'Dividends declared and paid,' as it directly impacts retained earnings and equity.

Step 5: Review the relationship between financial statements to reinforce understanding. The Statement of Changes in Stockholders' Equity connects the Income Statement (via net income) and the Balance Sheet (via equity accounts).