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What is numerator of rate earned on common stockholders equity ratio is equal to?
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How is the tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to?
I believe this is known as leverage.
How do cash dividends affect stockholders equity and how would a stock dividend affect stockholders equity?
They do not.
Does expenses increase stockholders' equity?
no
What affects stockholders equity?
increase retained earnings
Is stockholders equity a debit or credit?
Stockholders equity is same as owners equity which has credit balance because both are forms of capital for business and capital also has credit balance because it is the liability for business to payback to it’s owner’s that’s why stockholders equity is also credit balance.
How do you compute a Return on common stockholders equity?
(Net Income - Preferred Stock Dividends) / Average common stockholders' equity
The tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to as?
Leverage
Do Revenues represent decreases in stockholders' equity?
no, they represent increases in stockholders' equity.
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
How is the tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to?
I believe this is known as leverage.
How do cash dividends affect stockholders equity and how would a stock dividend affect stockholders equity?
They do not.
Dividends is what type of account?
Dividends are classified as stockholders' equity. They reduce stockholders' equity so they can also be called a contra equity account.
Net worth is equal to a stockholders equity plus what?
Net worth is equal to stockholders' equity minus liabilities.
What is The denominator in the calculation of the ratio of liabilities to stockholders' equity?
The denominator is the stockholders' (assuming there is more than one stockholder) equity
What items affect stockholders equity?
Stockholders Equity is increase by profits and the issuance of new stock. Stockholders Equity is reduced by losses, the payment of dividends and the purchase of Treasury Stock (the company's re-purchase of its own stock).
Does expenses increase stockholders' equity?
no
What are the two parts of stockholder's equity in a corporations and indicate the purpose of each?
Stockholders' equity consists of two parts: common stock and retained earnings. Companies record as common stock the investments of assets into the business by the stockholders. They record as retained earnings the income retained for use in the business.
