Cost Management
Analysis of Shareholders' Equity
USD 10.00
Learning Objectives:
- Describe the three primary legal forms available for a business.
- List and discuss the advantages and disadvantages of incorporating a business rather than maintaining a sole proprietorship or partnership.
- Explain the double taxation that is inherent in operating a corporate organization.
- Describe the impact that the possibility of issuing capital stock has on a corporation.
- Identify the rights normally held by the owners of common stock.
- Describe the responsibilities of a corporation’s board of directors.
- Define and explain the terms “authorized,” “outstanding,” “issued,” and “par value” in relationship to common stock.
- Record the issuance of common stock for cash.
- Record the issuance of common stock for a service or for an asset other than cash.
- Explain the difference between preferred stock and common stock.
- Discuss the distribution of dividends to preferred stockholders.
- Record the issuance of preferred stock.
- Define “treasury stock” and provide reasons for a corporation to spend its money to acquire treasury stock.
- Account for the purchase and resale of treasury stock, with both gains and losses occurring.
- Identify the various dates associated with a dividend distribution.
- Prepare all journal entries to report a cash dividend payment.
- Define the characteristics of a cumulative dividend.
- Explain the rationale for a stock dividend or stock split.
- Record the issuance of a stock dividend.
- Compute and explain return on equity.
- Discuss the reasons that earnings per share (EPS) figures are so closely watched by investors.
- Calculate basic EPS with or without the existence of preferred stock.
- Explain the relevance of the P/E ratio.
- Identify the informational benefit provided by diluted EPS.
Other course details:
- This is an introductory course that does not require any prerequisite.
- This course can be taken on a standalone basis.
- This course is chapter 16 in the book titled "Financial Accounting".
- It provides 2 PDUs (technical) towards your PMP professional development education.
Course Features
Credits:
2 PDU
Skill Section:
Technical
Access:
Lifetime
Test Questions:
20