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Lesson 13, Topic 5

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🎥+✏️Balance Sheet: Liabilities and Equity🟢

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Yousra Souissa 24 April 2025

The blueprint representative task highlights the preparation of a classified balance sheet. In this type of balance sheet, equity components are presented in order of permanence. The standard sequence is: common stock, preferred stock, additional paid-in capital, retained earnings, accumulated other comprehensive income, and treasury stock.

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1. Maroun, CPA 28 April 2025
  
  Hello Yousra,
  
  The rationale is “order of preference,” not permanence: accounts with the strongest claims and most explicit terms (preferred) are shown first. GAAP doesn’t mandate a single sequence, but authoritative texts and SEC Regulation S-X illustrate this “preferred-first” layout, and you’ll see the same order in most published financial statements. You can check out the financial statements of public companies using the following link: https://www.sec.gov/edgar/search/
  
  I hope this helps!
  
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Scott Stern 21 May 2025

You mention Other comprehensive income in a “previous” video. This hasnt been talked about yet.

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1. Maroun, CPA 23 May 2025
  
  Hello Scott,
  
  We use certain videos across multiple supplemental CPA courses, and we shuffle the sequence so each course mirrors the order used by its companion review course. That’s why “Other Comprehensive Income” hasn’t shown up yet in the course you are using, but you’ll reach it shortly.
  If you’d like to watch it sooner, you can locate the OCI video quickly by searching for it using the search bar at the top of the page.
  
  I hope this helps!
  
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Harikrishna Patel 15 August 2025

Can I reset my progress on the FAR Becker Supplemental course completely without going one by one and marking them incomplete?

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Deleted User 20 August 2025

hai ,i want to clarify one doubt regarding equity section
AOCI and RETAINED EARNINGS contains net income , why we have to add net income to both AOCI and RETAINED EARNINGS.

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1. Maroun, CPA 22 August 2025
  
  Hello Roshini,
  
  • Retained Earnings (RE) accumulates net income (less dividends).
  
  • Accumulated Other Comprehensive Income (AOCI) accumulates other comprehensive income (OCI) items only (e.g., unrealized gains/losses on AFS debt, foreign currency translation, pension OCI, cash flow hedge OCI). Net income does not go into AOCI.
  
  Why the confusion happens: on the statement of comprehensive income you see
  Net income + OCI = Comprehensive income, but the flows to equity are separate:
  
  Period end close → RE increases by net income.
  Period OCI → AOCI increases (or decreases) by OCI.
  
  Could you please share the exact timestamp where you saw that “net income is added to both AOCI and Retained Earnings”?
  
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