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Reporting & Analyzing Equity in Accounting Flashcards

Reporting & Analyzing Equity in Accounting Flashcards
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Sole Proprietorship
A business owned by just one person.
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Limited Liability Company
If you have this kind of business, you have a lot of flexibility and profits flow through you.
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C Corporation
Very large corporations that can have an unlimited numbers of shareholders. These corporations are subject to double-taxation.
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S Corporation
These are smaller corporations that can only have 100 shareholders. These shareholders must be U.S. citizens or residents. Corporations of this type can retain profits from double-taxing.
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Preferred Stock
Individuals who buy this kind of stock are first in line to get dividends. This type of stock is relatively low in risk and doesn't grow exceptionally fast.
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Common Stock
If you purchase this kind of stock you get a vote during shareholder elections. This kind of stock offers the chance for high rates of growth but it may also be risky.
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Stock
We use this term when discussing a share in ownership of a company. The price of this is determined by the company's total value.
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Dividend
A share of a company's profits that shareholders receive. The company's profits during a given time period influence this.
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16 cards in set

Flashcard Content Overview

The flashcards within this set were set up to help you go over different kinds of stock, including common stock, preferred stock and treasury stock. You can also consider why a company might repurchase its own stock. Dividends and contributed capital will also be covered. These cards focus on S-corporations, C-corporations and limited liability companies. Furthermore, both debt and equity financing will be addressed by this set of flashcards.

Front
Back
Dividend
A share of a company's profits that shareholders receive. The company's profits during a given time period influence this.
Stock
We use this term when discussing a share in ownership of a company. The price of this is determined by the company's total value.
Common Stock
If you purchase this kind of stock you get a vote during shareholder elections. This kind of stock offers the chance for high rates of growth but it may also be risky.
Preferred Stock
Individuals who buy this kind of stock are first in line to get dividends. This type of stock is relatively low in risk and doesn't grow exceptionally fast.
S Corporation
These are smaller corporations that can only have 100 shareholders. These shareholders must be U.S. citizens or residents. Corporations of this type can retain profits from double-taxing.
C Corporation
Very large corporations that can have an unlimited numbers of shareholders. These corporations are subject to double-taxation.
Limited Liability Company
If you have this kind of business, you have a lot of flexibility and profits flow through you.
Sole Proprietorship
A business owned by just one person.
Corporation
A group of people owns this kind of business. It offers legal protection to those who own it.
Equity Financing
A type of financing that raises a business's value through direct investment. One method for getting financing in this way is to bring on additional partners.
Debt Financing
A way to bring money into a business that involves generating debt. Taking out a loan is an example of this kind of financing.
Stock Repurchases
This occurs when a company buys back its own shares. Businesses may do this to try to prevent another company from taking them over.
Dividend Payout Ratio
A ratio that compares how much money is paid to a company's shareholders to the amount of money a company keeps as retained earnings.
Retained Earnings
This is the amount of the net income of a company that the company keeps. Companies don't pay this amount out in dividends.
Treasury Stock
We use this term to refer to stock that a company buys back from shareholders.
Contributed Capital
This component of stockholder equity is considered to be the aggregate value of stock bought directly from a company.

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