TAILIEUCHUNG - Lecture Fundamental accounting principles - Chapter 13: Accounting for corporations

Lecture Fundamental accounting principles - Chapter 13: Accounting for corporations. After studying this chapter you will be able to understand: Identify characteristics of corporations and their organization; explain characteristics of, and distribute dividends between, common and preferred stock; explain the items reported in retained earnings; compute earnings per share and describe its use; compute price-earnings ratio and describe its use in analysis. | Accounting for Corporations Chapter 13 PowerPoint Editor: Beth Kane, MBA, CPA Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 13: Accounting for Corporations 13-C1: Characteristics of Corporations 2 Privately Held Publicly Held Ownership can be Corporate Form of Organization Existence is separate from owners An entity created by law Has rights and privileges C 1 3 A corporation is an entity created by law that is separate from its owners. It has most of the rights and privileges granted to individuals. Owners of corporations are called stockholders or shareholders. Corporations can be separated into two types. A privately held (or closely held) corporation does not offer its stock for public sale and usually has few stockholders. A publicly held corporation offers its stock for public sale and can have thousands of stockholders. Public sale usually refers to issuance of stock and trading on an organized stock market. Characteristics of Corporations Advantages Separate legal entity Limited liability of stockholders Transferable ownership rights Continuous life Lack of mutual agency for stockholders Ease of capital accumulation Disadvantages Governmental regulation Corporate taxation C 1 4 Corporations represent an important type of organization. Their unique characteristics offer advantages and disadvantages. Advantages of Corporate Form Separate legal entity: A corporation conducts its affairs with the same rights, duties, and responsibilities of a person. It takes actions through its agents, who are its officers and managers. Limited liability of stockholders: Stockholders are liable for neither corporate acts nor corporate debt. Transferable ownership rights: The transfer of shares from one stockholder to another usually has no effect on the corporation or its operations except when this causes a change in the directors who control or manage the

• Kế toán - Kiểm toán
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Accounting for corporations
• Common stock
• Preferred stock
• Accounting information systems
• Fundamental system principles
• Technology based accounting systems
• Accounting information
• Financial accounting
• Managerial accounting
• Managerial cost
• Reporting manufacturing activities
• Merchandising operations
• Accounting cycle
• Completing the accounting cycle
• Classified balance sheet
• Accounting for partnerships
• Partnership form of organization
• Basic partnership accounting