Owner's Equity
On Your Test
Financial Accounting
Owner’s Equity
On Your Test
You will be expected to know the following for multiple-choice concept questions. Almost all questions will relate to these things:
What is a corporation
The definition of authorized, issued and outstanding shares
The definition of par value and why it is important
The difference in common stock and preferred stock
Common stockholder rights
Preferred stockholder rights
What does cumulative, non cumulative, and dividends in arrears mean
What is treasury stock and why would a company have treasury stock
What is the result of selling treasury stock back to investors
What is a dividend and who authorizes the dividend
What occurs on the declaration date, the record date, and the payment date
What is a stock dividend and who receives a stock dividend
How is a small stock dividend recorded
How is a large stock dividend recorded
How is a stock split recorded and what is impacted by a stock split
You will be asked to do the following on problems and multiple-choice problems that require calculations.
Record the issuance of stock
Record treasury stock transactions
Determine the dividend amount paid to common and preferred shareholders
Record cash dividends declared and paid
Record stock dividends declared and paid
Record a stock split
Prepare the stockholders equity section of the balance sheet after recording transactions related to stockholder’s equity