About This Chapter
Reporting & Analyzing Equity in Accounting - Chapter Summary and Learning Objectives
Accountants assist businesses and shareholders in reporting acquired equity and to analyze the value of these holdings. This chapter looks into forms of equity and how it works. Each lesson will teach you about a different aspect of equity reporting and analysis, such as detailing examples of equity and explaining different types of businesses. Take a quiz following every lesson to determine how well you have learned the material and feel free to contact an instructor with any questions. These lessons will cover such topics as:
- How to raise equity
- Proprietorships vs. partnerships vs. corporations
- How to issue stock
- What is stockholder equity
- Common stock vs. preferred stock
|Comparing Loans & Investments||Distinguish different forms of startup equity.|
|How to Raise Equity Financing: Proprietorships & Partnerships||Discover how to raise equity for smaller businesses.|
|Corporations: Characteristics & the Startup Process||Get the facts about corporations.|
|The Components of Stockholder Equity||Learn about equity and stockholders.|
|Comparing Common & Preferred Stock||Explore two types of stock.|
|Issuing a Stock & Accounting for Stock Repurchases||Examine how a stock is initially issued and how it is repurchased.|
|Items Reported in Retained Earnings||Learn about reporting retained earnings.|
1. Comparing Loans & Investments
Loans and investments can both be very useful tools used by businesses to grow. However, when looking at accounting paperwork, it can be easy to confuse them. In this lesson, we clarify that confusion and show how to use both.
2. How to Raise Equity Financing: Proprietorships & Partnerships
Many small businesses fail every year because they can't raise enough money to continue to do business. In this lesson, we look at how small businesses (sole proprietorships and partnerships) can raise equity financing.
3. Corporations: Characteristics & the Start Up Process
Ever wonder what the abbreviations LLC, Inc., or Corp. really mean? In this lesson, we take a look at corporations, their various types and how someone can start a corporation in their own state.
4. 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.
5. Comparing Common & Preferred Stock
From the sound of it, preferred stock has to be better than common stock, right? However, the simple truth is that it depends. For many people, common stock is the better option because it lets them vote.
6. Issuing a Stock & Accounting for Stock Repurchases
Corporations need money to help fund large purchases, like equipment and machinery, and to help with ongoing operations. In this lesson, you will learn about stock issuance and repurchases.
7. Items Reported in Retained Earnings
In this lesson, we'll learn about the items reported under retained earnings. We'll also learn how to calculate retained earnings by using these items.
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Other chapters within the Accounting 101: Financial Accounting course
- Introduction to Accounting
- Financial Statements in Accounting
- Mechanics of the Accounting Cycle
- Adjusting Accounts and Preparing Financial Statements
- Internal Controls in Accounting
- Merchandising Operations and Inventory in Accounting
- Receivables in Accounting
- Completing the Operating Cycle in Accounting
- Long-Term Assets in Accounting
- Current and Long-Term Liabilities in Accounting
- Statement of Cash Flows in Accounting
- Financial Statement Analysis in Accounting
- Studying for Accounting 101