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 accounts appears on the statement of stockholders' equity?

Retained Earnings

Cost of Goods Sold

Inventory

Accounts Payable

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Understand the purpose of the statement of stockholders' equity: It is a financial statement that shows changes in the equity section of the balance sheet over a specific period. It includes accounts related to stockholders' ownership, such as retained earnings, common stock, and additional paid-in capital.

Identify the nature of each account listed in the problem: Retained Earnings is part of stockholders' equity, while Cost of Goods Sold, Inventory, and Accounts Payable are not equity accounts. Cost of Goods Sold is an expense account, Inventory is an asset account, and Accounts Payable is a liability account.

Recognize that Retained Earnings is a key component of the statement of stockholders' equity. It represents the cumulative net income retained by the company after paying dividends to shareholders.

Exclude accounts that do not belong to stockholders' equity: Cost of Goods Sold, Inventory, and Accounts Payable are reported on other financial statements (income statement and balance sheet) but not on the statement of stockholders' equity.

Conclude that Retained Earnings is the correct account that appears on the statement of stockholders' equity, as it directly impacts the equity section by reflecting changes in net income and dividends.