About This Chapter
Accounting for Shareholder Equity & Comprehensive Income - Chapter Summary
When you study this chapter, you'll find engaging video lessons covering shareholder equity and comprehensive income accounting. Just a few of the subjects discussed here include calculating total equity, return on equity and earnings per share. If you'd rather watch just one portion of a video lesson, use the video tabs feature to easily navigate to that part of the video. We've included a quiz with each lesson and a test at the end of the chapter as a handy self-assessment tool. These resources are accessible to you 24 hours a day on any computer, mobile phone or tablet. You should be able to do the following once you have finished this chapter:
- Detail the formula used to calculate shareholder equity
- Outline the components of stockholder equity
- Explain how total equity is calculated
- Discuss the formula used to find earnings per share and return on equity
- Describe the impact of dividend distribution on retained earnings
- Provide a definition of comprehensive income
1. Shareholder Equity: Definition & Formula
One of most important things an investor is concerned about is shareholder equity. In this lesson, you'll learn what shareholder equity is and how to calculate it, and then you can test your knowledge with a short quiz.
2. Calculating Total Equity: Definition & Formula
Equity is important to owners and investors of a business. In this lesson, you'll learn what total equity is, how to calculate it, and how it fits into the overall financial picture of a business. A short quiz follows.
3. The Components of Stockholder Equity
Understanding stockholder equity is important for assessing the worth of a company from an investor's perspective. In this lesson, you'll learn about stockholder equity and its individual components.
4. How to Calculate Earnings Per Share: Definition & Formula
There are many different numbers that investors look at when deciding whether to invest in a company, including the earnings per share. In this lesson, we will learn what earnings per share means and how to calculate it.
5. How to Calculate the Return on Equity: Definition, Formula & Example
After watching this video lesson, you will learn how the return on equity helps you as a potential investor determine whether a certain company is worth investing in or not. You'll also learn how companies perform this calculation.
6. Impact of Dividend Distribution on Retained Earnings
There are many types of dividends that an investor can receive based on his/her shareholding in a company. In this lesson, you will learn about these dividends and their impact on retained earnings.
7. Comprehensive Income: Definition & Example
Knowing the comprehensive income of a firm gives you an in-depth financial understanding of a firm. In this lesson, you'll learn what comprehensive income is as well as when and where it is reported.
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Other chapters within the Accounting 202: Intermediate Accounting II course
- Accounting for Fixed & Intangible Assets
- Accounting for Securities & Investments
- Accounting for Liabilities & Contingencies
- Accounting for Bonds & Notes Payable
- Accounting for Operating & Capital Leases
- Cash Flows & Disclosures
- Accounting for Corporate Income Taxes
- Pensions & Post-Retirement Benefits
- Identifying & Correcting Errors in Accounting
- Studying for Accounting 202