BUS 254 Lecture Notes - Statement Of Changes In Equity, Retained Earnings, Capital Account

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Masood Kamlani

Document Summary

Shareholder"s equity for corporations represents the amount of ownership and earnings that the owners and investors have in the business. Single owner that is taxed on all profits and losses. Owner"s equity reflects all changes to equity in business. Two or more owners that are individually taxed on all profits and losses. Can have general partners with unlimited liability and limited partners with limited liability. Legally separate entity with ownership represented by shares. Separation between the owners and the business operations through board of directors. Cash is debited when common shares are issued. Preferred shares have preference over common shares with regards to dividends. Dividend amount stated as dollar amount per share. Controlling interest ownership of more than 50% of outstanding shares. Treasury shares repurchased shares that are not cancelled. Cash dividends are paid to shareholders from retained earnings. Property dividends are paid with a resource other than cash. Stock dividends are paid with additional company shares.