 |  Accounting: What the Numbers Mean, 5/e David H. Marshall,
Millikin University
Wayne W. McManus,
International College of the Cayman Islands
Daniel F. Viele,
Webster University
Accounting for and Presentation of Owners' Equity
Chapter 8 Learning ObjectivesAfter studying this chapter, you should understand:
1.The characteristics of common stock, and how common stock is presented in the balance sheet. |
| | | 2.What preferred stock is, what its advantages and disadvantages to the corporation are, and how it is presented in the balance sheet. |
| | | 3.The accounting for a cash dividend, and the dates involved in dividend transactions. |
| | | 4.What stock dividends and stock splits are, and why each is used. |
| | | 5.What the components of other comprehensive income (loss) are, and why these items appear in owners' equity. |
| | | 6.What treasury stock is, why it is acquired, and how treasury stock transactions affect owners' equity. |
| | | 7.How owners' equity transactions for the year are reported in the financial statements. |
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2002 McGraw-Hill Higher Education