Instructor%20Notes%20-%20Chapter%208

Instructor%20Notes%20-%20Chapter%208 - Management 200T...

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Accounting for and Presentation of Owners’ Equity Chapter 8 Paid-In Capital Common Stock Represents residual ownership Stockholders are ultimate owners of the corporation Own all assets in company after liabilities have been paid and Preferred Stock claims settled Liability is limited to amount invested Common stockholders cannot be forced to contribute additional funds in order to settle claims No upper limit on value of ownership Dividends are not guaranteed Have right to elect members of Board of Directors Par value – value assigned to one share of stock, usually a nominal amount Shares Authorized – # of shares authorized to be issues in the corporate charter, maximum number of shares they can issue Issued – # of shares actually transferred from the corporation to shareholders Outstanding – # of shares outstanding, may differ from issued shares due to treasury stock Treasury Stock – the firm’s own stock that has been acquired
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Instructor%20Notes%20-%20Chapter%208 - Management 200T...

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