ACC 211 Study Guide - Retained Earnings, Sole Proprietorship, Money-B

• School: University of Miami
• Department: Accounting Business Administration
• Course: ACC 211
• Professor: Sicre

Document Summary

Ii: easy to transfer ownership (sell stock, provides limited liability. As a separate legal encty, it can. : own assets. B: sue and be sued, enter into contracts. Ownership of a corpora&on: stockholders (owners of vocng shares, board of directors (elected by stockholders): sets dividends. External (non- managers: president (appointed by directors, vice presidents. Average number of shares outstanding for the period. Contributed capital: common stock, par value, par value, nominal value, par value does not equal market value. Ii: capital in excess of par value. Re + ni - dividends = end re (1) Legal capital: amount of capital required by state that must remain invested in business. Stock op&ons: allow employees to purchase stocks from the corporacon at a predetermined, xed price. Treasury stock: contra- equity, no vocng or dividend rights. Dividends on common stock: declared by board of directors, creates liability at declaracon, not legally required, requires su cient re and cash.