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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Suppose a local company has the following balance sheet accounts: Cash $10,000; Accounts Receivable $5,000; Inventory $7,000; Equipment $20,000; Accounts Payable $4,000; Notes Payable $8,000; Common Stock $15,000. What is the company's total equity?

$20,000

$25,000

$18,000

$30,000

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the concept of equity. Equity represents the residual interest in the assets of the company after deducting liabilities. The formula to calculate equity is: Equity = Total Assets - Total Liabilities.

Step 2: Identify the company's total assets. Assets include Cash, Accounts Receivable, Inventory, and Equipment. Add these values together: Total Assets = Cash + Accounts Receivable + Inventory + Equipment.

Step 3: Identify the company's total liabilities. Liabilities include Accounts Payable and Notes Payable. Add these values together: Total Liabilities = Accounts Payable + Notes Payable.

Step 4: Substitute the values of Total Assets and Total Liabilities into the equity formula: Equity = Total Assets - Total Liabilities.

Step 5: Verify the calculation by ensuring all values are correctly added and subtracted, and compare the result to the provided answer choices to determine the correct equity value.