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What is the account used to transfer assets from a business to its stockholders?
Wiki User
∙ 11y ago
Common stock
Wiki User
∙ 11y ago
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What account is used to record the transfers of assets from a business to its stockholders is?
The dividend account is used to record transfers of assets from a business to its stockholders. It is a temporary account that closes before the end of the accounting year.
What is the account used to record the transfer of assets from a business to its owner?
the owner's capital account
What is the transfer of all or a portion of a subsidiary's stock or other assets to the stockholders of its parent company on a pro rata basis called?
stock split
When account receivabes is collected cash the totl assets of the business increases?
Accounts receivable is also part of assets of business and cash as well so there is no difference on overall assets of business.
Is bondholders have a priority claim on assets ahead of common stockholders and preferred stockholders?
preferred stakeholder
Can a credit card that you had in your personal name but a lien on your corporate business account?
yes. the creditor can put a lien on anything that may be counted as your assets. if your corporate business account is one of your assets, the creditor can try to recover their money from that account.
Can an owner of a business withdraw assets from that business for personal use?
Unless those assets are part of an expressly-designated expense account, that would be fraud.
is it true or false if the liabilities owed by a business total $300,000 and stockholders equity is equal to $300,000, then the assets also total $300,000?
False
What is the revaluation expense account?
Revaluation account is the account which is used to revaluate the assets and liabilities in business from time to time to find the actual value of assets and liabilities shown in balance sheet.
What is the difference between preferred and common stockholders?
Preferred stockholders have a greater claim on the assets and profits of a company compared to common stockholders. If a company is liquidated, preferred stockholders have to be paid first before the common stockholders.
Why is it important to separate operating assets from financial assets?
Operating assets contribute to the day to day functions of the business. While financial assets add value to the business, they do not account for profitability of the business. Financial analysis models only use the operating assets to determine future profitability.
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.
