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

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Struggling with Financial Accounting?

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Multiple Choice

In financial accounting, what does a stock represent?

A liability owed to creditors

An ownership share in a corporation

A type of long-term debt instrument

A contractual obligation to deliver goods

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Verified step by step guidance

Step 1: Understand the concept of 'stock' in financial accounting. A stock represents an ownership share in a corporation, meaning it signifies partial ownership of the company by the shareholder.

Step 2: Differentiate between stocks and other financial instruments. Stocks are equity instruments, whereas liabilities owed to creditors, long-term debt instruments, and contractual obligations are not equity but rather debt or operational obligations.

Step 3: Recognize the rights associated with owning stocks. Shareholders typically have voting rights in corporate decisions and may receive dividends, which are a share of the company's profits.

Step 4: Note that stocks are classified into two main types: common stock and preferred stock. Common stockholders have voting rights, while preferred stockholders may have priority in receiving dividends but typically lack voting rights.

Step 5: Understand the role of stocks in financial accounting. Stocks are recorded in the equity section of a corporation's balance sheet, reflecting the ownership interest of shareholders in the company.