Accounting Ch8 part 1

Accounting Ch8 part 1 - Chapter 8 Accounting for and...

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Chapter 8: Accounting for and Presentation of Owners’ Equity Owners’ equity is the claim of the entity’s owners to the assets shown in the balance sheet. For an individual proprietorship, the term proprietor’s capital is used. For a partnership, partners’ capital is used. Balance Sheet consists of Paid-in capital (Preferred stock, Common Stock, Additional paid-in capital), Retained earnings, Accumulated other comprehensive income, less: Treasury stock, Noncontrolling interest. Paid-in capital represents the amount invested in the corporation by stockholders. Retained earnings represents the entity’s cumulative earnings less any dividends paid. Common stockholders have the right and obligation to elect members to the corporation’s board of directors. They also must approve changes to the corporate charter and may have to approve transactions such as mergers or divestitures. In cumulative voting, each stockholder is entitled to cast a number of votes equal to the number or shares owned multiplied by the number of directors to be elected. In slate voting, the common stockholder is entitled to one vote for each share owned, but
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This note was uploaded on 03/02/2011 for the course ACCT 502 taught by Professor Jaggi during the Fall '10 term at Rutgers.

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Accounting Ch8 part 1 - Chapter 8 Accounting for and...

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