Stockholders' Equity | Principles of Accounting

Published on November 27, 2023

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Summarize videos instantly with our Course Assistant plugin, and enjoy AI-generated quizzes: Learn all about stockholders’ equity in just a few minutes! Fabio Ambrosio, CPA, instructor of accounting at the Central Washington University, introduces the equity section of the balance sheet for a corporation and explains the components that are specific to stockholders’ equity, including paid-in capital, retained earnings, and dividends.This video is part of a complete, condensed Principles of Accounting series presented in short, digestible summaries.

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Course Hero’s Principles of Accounting video series covers the essentials of introductory accounting. Our short digest covers everything you need to know about the accounting cycle, accounting systems and controls, accounting for receivables and long-term assets, accounting for liabilities and equities, entity organizations and business analysis.

The video series begins with an introduction to Generally Accepted Accounting Principles (GAAP) and an exploration of accounting systems. It continues with an exploration of journalizing, trial balances, and the adjusting process that leads to the creation of the four major financial statements companies produce: income statement, statement of owner’s equity, balance sheet and statement of cash flows.

Along the way, you’ll learn about:
• GAAP and other legal requirements for accounting and reporting
• The Accounting Equation
• Single-Step and Multiple-Step Financial Statements
• Double-Entry and Manual Accounting Systems
• The General Ledger and Chart of Accountings
• Trial balances and the adjusting process
• Ethical standards in accounting

The series continues by providing a deeper understanding of how entities employ accounting principles, including:
• Accounting for merchandising businesses, including inventory costing methods and systems
• Internal and cash controls
• Accounting for receivables and long-term assets
• Accounting for current liabilities and payroll, long-term liabilities and investments
• Categories of businesses and the four types of business entities
• Corporate annual reports

Finally, the Principles of Accounting crash course includes a primer on business analysis tools, including preparation of a statement of cash flows and the uses ratio analysis.

Additional concepts we cover in these quick videos include: accounts payable, accrual basis accounting, cash basis accounting, Financial Accounting Standards Board (FASB), periodic and perpetual inventory systems, horizontal analysis, vertical analysis, liquidity analysis, matching principle, proprietorship, limited liability company (LLC), partnerships, operating income, Sarbanes-Oxley Act (SOX), subsidiary ledgers and single-step income statements.

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How Can Stockholders Equity Increase

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