Equity Chap11 - Reporting and Interpreting Owners Equity Chapter 11 11-2 Understanding The Business Advantages of a corporation Simple to become an

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Reporting and Interpreting Owners’ Equity Chapter 11
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11-2 Understanding The Business Advantages of a corporation Simple to become an owner Easy to transfer ownership Provides limited liability
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11-3 Because a corporation is a separate legal entity , it can . . . Own assets. Sue and be sued. Incur liabilities. Enter into contracts. Understanding The Business
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11-4 Ownership of a Corporation Voting (in person or by proxy ). Proportionate distributions of profits. Proportionate distributions of assets in a liquidation. Rights Stockholders’
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11-5 Accounting for Capital Stock Two primary sources of stockholders’ equity Retained earnings Contributed capital Common stock, par value Capital in excess of par value
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11-6 Common Stock Basic voting stock Ranks after preferred stock Dividend set by board of directors
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11-7 Authorized Shares Unissued Shares Treasury Shares Outstanding Shares Issued Shares Treasury shares are issued shares that have been reacquired by the corporation. Outstanding shares are issued shares that are owned by stockholders. Authorized, Issued, and Outstanding Capital Stock
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11-8 Par Value and No-par Value Stock Legal capital is the amount of capital, required by the state, that must remain invested in the business.
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This note was uploaded on 07/15/2011 for the course ACC 360 taught by Professor Marshallhunt during the Spring '09 term at University of Michigan-Dearborn.

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Equity Chap11 - Reporting and Interpreting Owners Equity Chapter 11 11-2 Understanding The Business Advantages of a corporation Simple to become an

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