Acct. 300 Chapter 13: Study Guide
Current liabilities are obligations whose liquidation is reasonably expected to require use of existing resources properly
classified as current assets, or the creation of other current liabilities.
Operating cycle is the
Chapter 14 Corporations
Stock dividends have no effect but the number of shares increase.
Preferred Shares Split: Annual dividend is split as well.
- 10 000 $6 P/S are split 3 for 1.
Now theres 30 000 shares and for $2.
5000 P/s for $8; 4 for
Chapter 13 Corporations In class
P.s 5000 for $5
C.s 10 000 for $1
2012 2013 2014
25k = 75k to P.s
10k = 10k to c.s
If 2014 profit was only 80k than c.s would only get 5k.
1P.s= 10 c.s
Chapter 13 Agency Relationship
Agency A relationship that exists when one party represents another party in the formation of legal
Agent A person who is authorized to act on behalf of another.
Principal A person who has permitted another to act
Business Law - Chapter 20
1. Combo of common law and legislation
2. Federal and provincial legislation
3. Employee v.s. independent contractor
- Control test (what/how)
- The Tool test
- Integration into workplace
4. Importance employees better protected
CHAPTERS 13, 14 15 & 16 METHODS OF CARRYING ON BUSINESS
These chapters review the three major ways that a business can be operated. Note that we are not dealing
with the particular type of business that is being conducted. Rather, we are dealing with how
Torts Civil wrong; causing injury to another person or his property or reputation
Compare to criminal wrong doing
One act can be both criminal and civil wrong
2 possible trials different burden of proof (government must prove criminal c
1) Personal Property
2) Intellectual Property
3) Real Property
Land & Building
Affixed to Land
Formal System of ownership
Lease of Real property Division of Ownership Possessions
P14-2A Part A
Balance Sheet (partial)
December 31, 2013
Common shares (unlimited number of shares authorized, 90,000