Explore the components of owner's equity.
- As is almost always the case,…things are always a little more complicated…than they appear at first glance.…Previously, we said that owners' equity consists…of two parts, paid-in capital and retained earnings,…and those two accounts cover about 90%…of the activity in owners' equity.…But there are a couple of other things…worth mentioning about owners' equity.…In addition to paid-in capital and retained earnings,…the equity section of a corporation often includes…treasury stock and accumulated other comprehensive income.…
Let's take a brief look at these two items.…When a company buys back its own shares,…accountants call the repurchased shares treasury stock.…The amount a company spends to repurchase its own shares…is usually shown as a subtraction…from total stockholders' equity.…Like a dividend payment, a treasury stock purchase is a way…for a corporation to distribute cash to stockholders.…The difference is that in a dividend payment,…the cash is distributed evenly to all stockholders,…and all stockholders maintain their ownership…
Released
12/21/2018Stay tuned for Part 2 of the training series, which covers ratio analysis, forecasting, and business valuation.
- Types of financial assets and liabilities
- Equity
- Balance sheets
- Income statements
- Statements of cash flow
- Bookkeeping
- How business transactions impact accounting
- Debits and credits
- Accrual accounting
- Adjusting journal entries
- Preparing financial statements
Skill Level Beginner
Duration
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Introduction
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1. The Accounting Equation
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The basic equation3m 17s
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2. Assets
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Definition of an asset4m 26s
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Types of assets: Current3m 56s
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Types of assets: Long term4m 37s
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3. Liabilities
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Definition of a liability3m 48s
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Contingent liabilities4m 13s
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4. Owner's Equity
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Definition of equity4m 9s
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Book value vs. net worth3m 33s
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5. Financial Statements: Balance Sheet
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6. Financial Statements: Income Statement
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Income statement4m 55s
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Earnings per share4m 21s
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The Walmart income statement4m 42s
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7. Financial Statements: Statement of Cash Flows
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Cash cows1m 50s
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Statement of cash flows2m 49s
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8. How Financial Statements Are Made
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9. Debits and Credits
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Debits and credits4m 45s
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Journal entries, part 15m 25s
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Journal entries, part 24m 53s
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Journal entries, part 34m 41s
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T-accounts and posting3m 29s
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10. Accrual Accounting
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Net income vs. cash flow5m 9s
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Conclusion
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Next steps1m 34s
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Video: Other components of owner's equity