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

On which of the four major financial statements would you find the amounts for common stock and paid-in surplus?

Balance Sheet

Statement of Cash Flows

Statement of Retained Earnings

Income Statement

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Verified step by step guidance

Step 1: Understand the four major financial statements: Balance Sheet, Statement of Cash Flows, Statement of Retained Earnings, and Income Statement. Each serves a specific purpose in financial reporting.

Step 2: Recall that common stock and paid-in surplus are components of a company's equity. Equity is reported on the Balance Sheet, which provides a snapshot of a company's financial position at a specific point in time.

Step 3: Note that the Statement of Cash Flows tracks cash inflows and outflows but does not directly report equity components like common stock and paid-in surplus.

Step 4: Understand that the Statement of Retained Earnings explains changes in retained earnings over a period, including dividends and net income, but does not include common stock and paid-in surplus.

Step 5: Recognize that the Income Statement reports revenues and expenses to calculate net income, which contributes to retained earnings but does not include equity components like common stock and paid-in surplus.