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

Total stockholders’ equity appears in which two financial statements?

Income Statement and Balance Sheet

Statement of Cash Flows and Income Statement

Balance Sheet and Statement of Stockholders’ Equity

Statement of Stockholders’ Equity and Statement of Cash Flows

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Verified step by step guidance

Understand the concept of stockholders' equity: Stockholders' equity represents the owners' claim on the assets of a company after all liabilities have been deducted. It is a key component of the accounting equation: Assets = Liabilities + Stockholders' Equity.

Identify the financial statements where stockholders' equity is reported: Stockholders' equity is primarily reported in the Balance Sheet and the Statement of Stockholders' Equity.

Explain the Balance Sheet's role: The Balance Sheet provides a snapshot of a company's financial position at a specific point in time. It includes assets, liabilities, and stockholders' equity, showing how equity fits into the overall financial structure.

Explain the Statement of Stockholders' Equity's role: This statement details changes in stockholders' equity over a period, including contributions from owners, dividends paid, and retained earnings. It provides a deeper understanding of equity movements.

Clarify why other statements are not relevant: The Income Statement focuses on revenues and expenses, while the Statement of Cash Flows tracks cash inflows and outflows. Neither directly reports total stockholders' equity, which is why they are not the correct answers.