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What is the transfer of a subsidiary stock or assets to stockholders of its parent company on a pro rata basis called?
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What is the appropriate order for a company's chart of accounts?
assets, liabilities, stockholders' equity, revenues, expense
Which financial statement would best indicate whether the company relies on debt or stockholders' equity to finance its assets?
Balance Sheet
Is bondholders have a priority claim on assets ahead of common stockholders and preferred stockholders?
preferred stakeholder
Does goodwill only appear on the consolidated balance sheet?
That is correct. Goodwill as an asset appears on the balance sheet of a consolidated company to represent any premium that the acquiring company paid for a subsidiary company that is in excess of the fair value of the company's net assets. Therefore, Goodwill would only show up on the consolidated balance sheet, as the subsidiary's net assets are not reflected on the acquiring company's balance sheet until the consolidation process.
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 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
What is the account used to transfer assets from a business to its stockholders?
Common stock
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.
Who has first rights to its remaining assets after a company fails?
Preferred Stockholders.
What is the appropriate order for a company's chart of accounts?
assets, liabilities, stockholders' equity, revenues, expense
If a parent company wants to give additional capital contributions to its subsidiary company how does it get reported on the balance sheet?
It will be repoted as Investments in consolidated subs on BS of parent company and it'll be considered as Assets. If a parent company owns 65% of a subsidiary, is this considered wholly owned?
Which financial statement would best indicate whether the company relies on debt or stockholders' equity to finance its assets?
Balance Sheet
Is bondholders have a priority claim on assets ahead of common stockholders and preferred stockholders?
preferred stakeholder
Does goodwill only appear on the consolidated balance sheet?
That is correct. Goodwill as an asset appears on the balance sheet of a consolidated company to represent any premium that the acquiring company paid for a subsidiary company that is in excess of the fair value of the company's net assets. Therefore, Goodwill would only show up on the consolidated balance sheet, as the subsidiary's net assets are not reflected on the acquiring company's balance sheet until the consolidation process.
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.
Why does buying a corporate bond involve less risk than buying stock in the same corporation?
When a company faces near bankruptcy and needs to liquidate its assets, the first claim will be given to the creditors before the stockholders. The bond represents the debt of a company. Hence, it is the company's legal obligation to settle it. While the stockholders will just share the gains and as well as the losses of the company.
Can stockholders' equity be described as claims of creditors on total assets?
yes
