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 transactions will change the balance of a stockholders' equity account category?

Purchasing inventory on account

Paying a supplier for a previous purchase

Issuing new shares of common stock for cash

Borrowing money from a bank

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Verified step by step guidance

Step 1: Understand the concept of stockholders' equity. Stockholders' equity represents the owners' claim on the assets of a company after liabilities are deducted. It includes components such as common stock, retained earnings, and additional paid-in capital.

Step 2: Analyze each transaction to determine its impact on stockholders' equity. Purchasing inventory on account and paying a supplier for a previous purchase are transactions that affect assets and liabilities but do not directly impact stockholders' equity.

Step 3: Evaluate the transaction of issuing new shares of common stock for cash. When a company issues new shares, it increases the common stock account and potentially the additional paid-in capital account, both of which are part of stockholders' equity.

Step 4: Consider the transaction of borrowing money from a bank. Borrowing money increases liabilities (e.g., notes payable) and cash (an asset), but it does not directly affect stockholders' equity.

Step 5: Conclude that the transaction 'Issuing new shares of common stock for cash' is the one that changes the balance of a stockholders' equity account category, as it directly increases the equity through the common stock account.