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

Which of the following best describes what the statement of owner's equity reports?

Changes in the owner's capital account during a period, including investments, net income or loss, and withdrawals.

The revenues and expenses of a business for a specific period.

The assets, liabilities, and owner's equity of a business at a specific point in time.

The cash inflows and outflows from operating, investing, and financing activities.

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the purpose of the statement of owner's equity. It is a financial statement that reports changes in the owner's capital account over a specific period. This includes investments made by the owner, net income or loss from business operations, and withdrawals by the owner.

Step 2: Compare the statement of owner's equity to other financial statements. For example, the income statement reports revenues and expenses for a specific period, the balance sheet reports assets, liabilities, and owner's equity at a specific point in time, and the cash flow statement reports cash inflows and outflows from operating, investing, and financing activities.

Step 3: Identify the key components of the statement of owner's equity. These include the beginning capital balance, additional investments, net income or loss, withdrawals, and the ending capital balance.

Step 4: Analyze the options provided in the problem. The correct description of the statement of owner's equity is the one that focuses on changes in the owner's capital account during a period, including investments, net income or loss, and withdrawals.

Step 5: Confirm the correct answer by matching the description of the statement of owner's equity to the options provided. The correct answer is the first option: 'Changes in the owner's capital account during a period, including investments, net income or loss, and withdrawals.'