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 best describes what the statement of owner's equity reports?

The assets, liabilities, and owner's equity at a specific date

The cash inflows and outflows for a specific period

The revenues and expenses for a specific period

Changes in the owner's capital account during a specific period

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Verified step by step guidance

Understand the purpose of the statement of owner's equity: It is a financial statement that shows the changes in the owner's capital account over a specific period.

Recognize the components typically included in the statement of owner's equity: These include the beginning capital balance, additional investments by the owner, net income or net loss, and withdrawals by the owner.

Identify the relationship between the statement of owner's equity and other financial statements: Net income or net loss is derived from the income statement, and withdrawals or investments are recorded in the owner's equity section.

Clarify why the other options are incorrect: The statement of owner's equity does not report assets, liabilities, or cash flows; those are covered by the balance sheet and cash flow statement, respectively.

Conclude that the correct description is: 'Changes in the owner's capital account during a specific period,' as this aligns with the purpose and structure of the statement of owner's equity.