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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Multiple Choice

All of the following would result in an increase in stockholders' equity except:

Receiving additional paid-in capital

Earning net income

Issuance of common stock

Declaring and paying dividends

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Verified step by step guidance

Understand the concept of stockholders' equity: Stockholders' equity represents the owners' claim to the assets of a corporation after all liabilities have been deducted. It is affected by transactions that increase or decrease the company's net assets.

Analyze the impact of receiving additional paid-in capital: Additional paid-in capital is the amount received from shareholders above the par value of the stock. This increases stockholders' equity because it represents an inflow of funds from investors.

Evaluate the effect of earning net income: Net income increases retained earnings, which is a component of stockholders' equity. Therefore, earning net income results in an increase in stockholders' equity.

Consider the issuance of common stock: Issuing common stock brings in cash or other assets from investors, increasing stockholders' equity through the common stock and additional paid-in capital accounts.

Understand the impact of declaring and paying dividends: Declaring and paying dividends reduces retained earnings, which is a component of stockholders' equity. Therefore, this action decreases stockholders' equity rather than increasing it.