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

Transactions between a company and its stockholders affect the company's _____ accounts only.

expense

liability

equity

revenue

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Understand the nature of transactions between a company and its stockholders. These transactions typically involve ownership interests, such as issuing stock, paying dividends, or repurchasing shares.

Recognize that stockholder-related transactions do not directly affect the company's expense, liability, or revenue accounts. These accounts are tied to operational activities and obligations rather than ownership changes.

Identify that equity accounts are impacted by stockholder transactions. Equity represents the ownership interest in the company, including common stock, retained earnings, and additional paid-in capital.

Consider examples of equity transactions: issuing stock increases equity, paying dividends decreases retained earnings (a component of equity), and repurchasing shares reduces equity.

Conclude that transactions between a company and its stockholders exclusively affect the equity accounts, as these transactions are related to ownership and not operational or financial obligations.