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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

On which financial statement would the Dividends account appear?

Statement of Retained Earnings

Income Statement

Statement of Cash Flows

Balance Sheet

Previous problemNext problem

Verified step by step guidance

Understand the purpose of each financial statement: The Income Statement reports a company's revenues and expenses, the Statement of Retained Earnings shows changes in retained earnings including dividends, the Statement of Cash Flows tracks cash inflows and outflows, and the Balance Sheet provides a snapshot of assets, liabilities, and equity.

Recognize that dividends represent a distribution of earnings to shareholders and are not an expense or revenue. Therefore, they do not appear on the Income Statement.

Note that dividends are a reduction in retained earnings, which is why they are reported on the Statement of Retained Earnings. This statement reconciles the beginning and ending retained earnings for a period.

Understand that dividends are also a cash outflow, but they are not classified as operating, investing, or financing activities in the Statement of Cash Flows. Instead, they are shown as a financing activity.

Confirm that dividends do not appear on the Balance Sheet directly, as they are not an asset, liability, or equity account. However, their impact is reflected in the retained earnings section of equity after being deducted.