Please describe each of the following in your own words. PLEASE ANSWER IN YOUR O
ID: 2380807 • Letter: P
Question
Please describe each of the following in your own words. PLEASE ANSWER IN YOUR OWN WORDS. DO NOT COPY AND PASTE
a)
Common Stock
b)
Preferred Stock
c)
Additional paid?in capital
d)
Retained Earnings
e)
Cash dividends
f)
Stock dividends and stock splits
g)
Non-controlling (Minority) Interest
h)
Reporting Changes in Owners' Equity Accounts
i)
Proprietorships and Partnerships Owners
Please describe each of the following in your own words. PLEASE ANSWER IN YOUR OWN WORDS. DO NOT COPY AND PASTE
a)
Common Stock
b)
Preferred Stock
c)
Additional paid?in capital
d)
Retained Earnings
e)
Cash dividends
f)
Stock dividends and stock splits
g)
Non-controlling (Minority) Interest
h)
Reporting Changes in Owners' Equity Accounts
i)
Proprietorships and Partnerships Owners
Explanation / Answer
common stock: the amount of money in the common stock account. sort of like 'how much money the owners have given into the company, but only the par value goes in here'.
preferred stock: same thing, except preferrred shareholders get their dividends FIRST, before common stock holders do.
APIC: the extra money, OVER the par value, that we get when we issued the common stock or preferred stock.
RE: how much money, since the beginning of the company's life, that we have earned in net income. But then minus all the dividends we have paid out. so it's the profits that the company has held onto, in the company.
cash dividends: when we give cash out to the owners of our company. so like if a bar makes a profit but then gives money out to the owners, the owners got a dividend.
stock dividends and stock splits: stock dividend is like a cash dividend but we give out stock isntead of cash. stock split is where we cut out stock shares into pieces, like 2 for 1 or 3 for 1. a person who had 10 shares now has 20 shares or 30 shares.
non-controlling interest: when 2 companies are put together, like if one buys the other, now their 2 balance sheets become 1. but, there's non-controlling interest on there, which is the acquirered comapny that is NOT owned by the acquiring company.
reporting changes in OE accounts: OE accounts are RE and Common stock and preferred stock and APIC. when we report changes in those accounts, we COULD make a financial statement called 'changes in owners' equity'.
propreetorships and parnterships owners' equity: A= L + OE. So A-L=OE. so OE is the assets, minus the liabiltiies of the comapny. proprietorship means 1 person owns a company and a partnership means more than 1 person. BUT, it's not a corporation.
not for profit and governmental organizations owners' equity: same idea. A-L=OE. so it's the assets minus the liabilities. it's kind of like 'how much money is in the organization' or 'how much the organization is worth on paper'.