ACTG 2011 Chapter Notes - Chapter 10: Canada Business Corporations Act, Financial Statement, Retained Earnings

• School: York University
• Department: Accounting
• Course: ACTG 2011
• Professor: Laura Simeoni

Document Summary

Entities finance their assets from: debt and equity. Direct investment is purchasing ownership from an entity for cash or other assets. Indirect investment is when an entity reinvests the profits it earns into its own activities. Assets - liabilities = owner"s equity (whats left over after assets have been used to satisfy the creditors. Corporation is a separate legal and taxable entity. Shareholders of the main attractions of a corporation is the limited liability provided by its corporate status. > shareholders aren"t liable for the corporation"s obligations and losses beyond the amount they have invested. Assets from the sale of shares by the corporation directly to shareholders. Catch-all category that captures equity transactions not included in other categories. > accumulated amounts not reported as other comprehensive income in the statement of comprehensive income **(does not exist with aspe)** Separation of direct and indirect investment show whether money distributed is due to: Dividends is paid relative to success of a company.