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 items appear on the statement of stockholders' equity?

Net sales revenue

Dividends declared

Total liabilities

Cost of goods sold

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Verified step by step guidance

Step 1: 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 items such as common stock, retained earnings, and dividends declared.

Step 2: Identify the items listed in the problem and determine whether they are relevant to the statement of stockholders' equity. Net sales revenue, total liabilities, and cost of goods sold are not part of stockholders' equity; they are part of the income statement or balance sheet.

Step 3: Recognize that dividends declared are directly related to the statement of stockholders' equity. Dividends reduce retained earnings, which is a component of stockholders' equity.

Step 4: Recall the formula for retained earnings: \( \text{Retained Earnings (End)} = \text{Retained Earnings (Beginning)} + \text{Net Income} - \text{Dividends Declared} \). Dividends declared are subtracted from retained earnings, making them a key item on the statement.

Step 5: Conclude that the correct answer is 'Dividends declared,' as it directly impacts the statement of stockholders' equity by reducing retained earnings.