Dividends
Share Capital
Characteristics of Corporations
Financial Statement Analysis
100
True or False?
Dividends are paid to shareholders before tax is paid on earnings.
FALSE
100
These type of shares have the right to be paid dividends before other shareholders are paid
What are preferred shares?
100
The owners of a corporation
What are shareholders?
100
What is the effect on the balance sheet of issuance of shares for cash?
Assets up Equity Down.
200
Payment of dividends in cash reduces these two accounts
What are the Cash and Retained Earnings accounts.
200
The cumulative sum of all previous years net profit/losses?
What is Retained Earnings?
200
This group has immediate authority over the CEO of a Corporation
What are the Board of Directors?
200
What is the effect on the Statement of Changes in Equity when we record a Net Loss on the Income Statement.
Reduction of Retained Earnings (Equity)
300
These three special dates are related to the payment of dividends
what are the date of declaration, Date of Record, and Date of Payment
300
What account is debited when a Dividend is declared?
Retained Earnings
300
This characteristic stipulates that a corporation's can continue to operate indefinatly as long as it is successful
What is Continuous Life?
300
These two statements are identical to partnerships except for the income tax expense
The Income Statements
400
These type of shares have no right to prior periods unpaid dividends
what are Non-cumulative shares?
400
What account is credited when a dividend is declared
Dividends Payable
400
True or False
Corporation's pay taxes the same way as a sole propritorship, at the personal income tax rate.
False
400
The Balance Sheets for Corporations and partnerships are the same except for which section?
The Equity Section.
500
The formula for Book Value Per Share?
Common Shares Outstanding divided by average numbers of shares outstanding.
500
What is the formula for EPS (Earnings per Share)
500
A corporation is a _______ legal entity from it's ________.
Separate, Owners
500
What would the company need to accomplish to improve the EPS ratio?
Record a Net Profit (after taxes and Interest)