F7 - M5 - Stockholders' Equity: Part 1 Flashcards
Stockholders’ (owners’) equity includes five major components
1) capital stock; 2) additional paid-in capital; 3) retained earnings or deficit; 4) accumulated other comprehensive income; and 5) treasury stock.
When an entity presents consolidated financial statements, any __________ must be shown in equity.
noncontrolling interest
Capital stock includes these terms (3)
authorized, issued, and outstanding.
Treasury stock is issued but not ________.
outstanding.
Common shareholders’ equity equals total stockholders’ equity reduced for the _______________
claims of preferred shareholders.
Book value per share is the common shareholders’ equity divided by the ___________________ at year end.
common shares outstanding at year-end.
What is the calculation for Book value per share?
Common shareholders equity/ number of common shares outstanding
_________are “first in line” before common shareholders for dividends and payment in liquidation.
Preferred shares
P/S may also be (3)
cumulative, participating, or convertible.
Mandatorily redeemable preferred stock is reported as a _________ because it has a maturity date, like other debt instruments.
liability
__________ can come from several sources in addition to any amount received above the par value of shares issued.
Additional paid-in capital
________ can be increased or decreased by many events, including: income, losses, cash dividends, property dividends, stock dividends, prior period adjustments, cumulative effects of changes in accounting principles, and quasi-reorganizations.
Retained earnings
_____________ is an equity account into which the components of other comprehensive income flow.
Accumulated other comprehensive income
Treasury stock may be accounted for by the (2)
cost method or the legal (par value) method.
__________ result in a credit to contributed capital.
Donated shares
