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 financial statement reports the dividends declared during the current accounting period?

Statement of Cash Flows

Balance Sheet

Income Statement

Statement of Retained Earnings

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Understand the purpose of each financial statement: The Statement of Cash Flows reports cash inflows and outflows, the Balance Sheet shows the financial position at a specific point in time, and the Income Statement reports revenues and expenses over a period. The Statement of Retained Earnings focuses on changes in retained earnings, including dividends declared.

Recognize that dividends declared reduce retained earnings. Dividends are distributions of earnings to shareholders and are not considered expenses, so they do not appear on the Income Statement.

Learn that the Statement of Retained Earnings starts with the beginning retained earnings balance, adds net income (or subtracts net loss), and subtracts dividends declared to arrive at the ending retained earnings balance.

Identify that dividends declared during the current accounting period are specifically reported in the Statement of Retained Earnings because they directly affect the retained earnings account.

Conclude that the correct financial statement to report dividends declared during the current accounting period is the Statement of Retained Earnings, as it tracks changes in retained earnings, including the impact of dividends.