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Does issuing capital stock in exchange for cash decrease or increase stockholder's equity?
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What increases and what decrease capital or owners equity?
Increase capital through additional investment of the owner, increase in income Decrease capital through withdrawal of the money made by the owner, incur losses
What is effect on working capital if there is an increase in inventory turnover?
decrease
When two asset accounts are changed in a transaction there must be an increase and a decrease?
yes accounting equation is asset = liability +own's equity. the transaction is a decrease on account recceivable of asset and an increase on capital of asset. therefore, the equation is balanced.
What affect does an increase or decrease in accounts payable have on the statement of cash flow?
It effects in working capital changes in cash flow
The stockholders' equity section is usually divided into what three parts?
capital stock, additional paid-in capital, retained earnings
What increases and what decrease capital or owners equity?
Increase capital through additional investment of the owner, increase in income Decrease capital through withdrawal of the money made by the owner, incur losses
The total amount of cash and other assets received by a corporation from its stockholders in exchange for common stock is?
Referred to as paid-in capital.
What is effect on working capital if there is an increase in inventory turnover?
decrease
Do drawing decrease the capital of owner?
Yes, it's the opposite of capital introduced which would increase it.
When you increase human capital does it increase or decrease productivity?
if employees perform well, the GDP increases
How can a company increase stockholders equity?
- By generating GAAP earnings and not paying them as dividends - the retained earnings will increase. - By selling and increasing outstanding number of shares - the paid in capital will increase.
Who invested the capital needed by corporations and chose directors?
stockholders
Causes of low capital formation?
I thin that we can control of low capital formation in the under developing countries. control the poverty, decrease birth rate, saving into bank, decrease international demonstration effect, improve infra structure increase entrepreneurial abilities, decrease unproductive expenditures, decrease unequal income distribution, decrease inflation, problem of money marker and decrease market imperfections.
When two asset accounts are changed in a transaction there must be an increase and a decrease?
yes accounting equation is asset = liability +own's equity. the transaction is a decrease on account recceivable of asset and an increase on capital of asset. therefore, the equation is balanced.
How is the stockholders' equity section of a corporate balance sheet different from that in a single-owner business?
Stockholders' equity is to a corporation what owner's equity is to a sole proprietorship. Owners of a corporation are called stockholders (or shareholders), because they own (or hold) shares of the company's stock. Stock certificates are paper evidence of ownership in a corporation. For sole proprietorship stocks usually are not issued. Examples of stockholders' equity accounts include: - Common Stock - Preferred Stock - Paid-in Capital in Excess of Par Value - Paid-in Capital from Treasury Stock - Retained Earnings - Etc. Both owner's equity and stockholders' equity accounts will normally have CREDIT balances. How stockholders' equity is reflected in the balance sheet? The stockholders' equity section of a corporation's balance sheet is: - Paid-in Capital - Retained Earnings - Treasury Stock The stockholders' equity section of a corporation's balance sheet is: STOCKHOLDERS' EQUITY Paid-in Capital ..Preferred Stock ..Common Stock ..Paid-in Capital in Excess of Par Value - Preferred Stock ..Paid-in Capital in Excess of Par Value - Common Stock ..Paid-in Capital from Treasury Stock Retained Earnings Less: Treasury Stock ..TOTAL STOCKHOLDERS' EQUITY
What affect does an increase or decrease in accounts payable have on the statement of cash flow?
It effects in working capital changes in cash flow
What are the two principal components of stockholders?
paid-in capital and retained earnings.
