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Outstanding stock is an "owner's equity" account. It's on the same side of the accounting equation as liabilities, but it is not a liability.

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Q: Is common shares considered as a current liability?
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Why is limited liability important in the business world?

because it limits your liability to the amount of shares that you hold. So if you hold 100 shares for £1 each, then your liability to the company's creditors is £100 (if you have not already given that to the co when you got your shares)


What is forfeited share?

Forfeited shares Shares in a no-liability company which are forfeited (lost) to the previous owner because of non-payment of a call on the shares. Forfeited shares Shares in a no-liability company which are forfeited (lost) to the previous owner because of non-payment of a call on the shares.


TCI Satellite EntertainmentInc you have the common stock in front of you what is it worth?

I have 18 shares of common stock in this company. What is the current value?


What are the accounting journal entries to record the exchange of debt for common stock?

Debit the liability (debt) account and credit Common Stock (for the par value of the shares) and Additional Paid in Capital (for the balance).


What is considered a private limited company?

A private limited company is one where the liability of all owners and investors is solely limited to the amount that has been invested in the company or purchased in shares.


Is ordinary shares a current or non current asset?

Neither, shares are listed under owners equity.


What are the differences between limited liability company and cooperatives on the basis of shares?

Co operative companies give shares to their workers, so as you work for the company, shares are given out. Sometimes these companies will give more shares the longer you work for them. Limited liability companies issue shares either on the sotck market, where anyone can buy them, or to those inside the company themselves.


Advantages of ordinary share?

If I underatand the question, there are 2 kinds of shares of a corporation: Prefferred and Common (ordinary) shares. Common shares can move up and down because they relate to the current and future consesus of investors. Preferred shares are less volatile because their dividends are promised and no one is going to bid extravagaqntly fo0r a limited divieden.Common shres adjust (or can adjust) dividends to current conditions.


What is accounting treatment for deposit for shares?

If the deposit for shares does not meet the definition of liability i.e. there is no obligation to pay back then it should be treated as equity.


What is the accounting treatment for 'deposit for shares'?

If the deposit for shares does not meet the definition of liability i.e. there is no obligation to pay back then it should be treated as equity.


What is Difference between limited liability company and limited liability company?

A company can be a limited or unlimited. Limited liability company is one which limits the liability of the members(shareholders) by (1) limited by shares or (2) limited by guarantee. Therefore Company limited by guarantee is a type of limited company which means the liability of the members' is limited by the guarantee given by them while becoming the member. The members have agreed to be liable to the company at the time of liquidation of the company upto an amount for which he is liable and does not have any other liability. Limited by shares means the member (shareholder) is liable for the value of the shares only. Members of the company with unlimited liability has unlimited liability for which they are liable even from their personal property if required.


What is the difference between limited liability and unlimited liability company?

A company can be a limited or unlimited. Limited liability company is one which limits the liability of the members(shareholders) by (1) limited by shares or (2) limited by guarantee. Therefore Company limited by guarantee is a type of limited company which means the liability of the members' is limited by the guarantee given by them while becoming the member. The members have agreed to be liable to the company at the time of liquidation of the company upto an amount for which he is liable and does not have any other liability. Limited by shares means the member (shareholder) is liable for the value of the shares only. Members of the company with unlimited liability has unlimited liability for which they are liable even from their personal property if required.