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Is share premium is part of paid up capital?
No, share value at par is considered while calculating paid up capital.
Compare mutual funds and stocks?
A share of stock represents ownership of part of a company. A share of a mutual fund represents ownership of part of a pool of stocks from many different companies. Mutuals are like pre-selected diversified portfolios.
Why is share of common stock an asset for its owner and liability for corporation?
A single share is a part of capital of the company so if anybody purchase the share of company that person is investing in the share capital of company and providing the company necessary money to operate that's why it is the investment of the owner of share which is called then the shareholder of company and that shares becomes the asset of the shareholders and while company is acquiring capital in the shape of shares that's why it is the liability of the corporation to pay back that amount of money back to the shareholders at certain time or at liquidation as written in the agreement to raise the capital through share issue.
What is fund flow statement and their uses?
Uses Of Fund Flow Statement1. The users of fund flow statement, such as investors, creditors, bankers, government, etc., can understand the managerial decisions regarding dividend distribution, utilization of funds and earning capacity with the help of fund flow statement. 2. The quantum of working capital is revealed by the schedule of working capital changes, which is a part of fund flow statement.3. The fund flow statement is the best and first source for judging the repaying capacity of an enterprise.4. The management will be able to detect surplus/shortage of fund balance.5. The fund from operation is not mentioned in the profit and loss account and balance sheet but it is separately calculated for the purpose of fund flow statement.
How capital reduces banking risks?
Capital is the amount of money the bank has as cash reserves to fund their business, write off bad debts etc. the more capital a bank has, the safer its financial situation would be and hence there are lesser risks on part of the bank as well as to its customers.
Why net profit added in capital?
Net profit of current fiscal year added in capital because it is part of owners capital because owners have invested capital to earn profit.
What account would be double ruled in the ledger as part of the closing process?
When in accounting the owners capital would be double ruled in the ledger as part of the closing process.So the correct answer will be Owners Capital
Is share capital an equity?
Yes share capital is part of equity which may includes other kind of capital as well like owner’s capital etc
Is share premium is part of paid up capital?
No, share value at par is considered while calculating paid up capital.
Is share premium paid part of paid up capital?
Yes share premium paid is part of paid up capital and shown separately as share premium account in equity section of balance sheet.
Are shareholders owners of company?
The company is not always the property of the shareholders. The company is in part the property of the shareholders if it is a publicly traded company.
What is subscribed capital?
The individual subscribed share value and liability of the total share capital of a company. In detail: Par value of that part of the authorized share capital which has been issued (sold) as shares-whether their purchasers (shareholders) have paid for them or not. A firm can, at any time, issue new shares up to the full amount of authorized share capital. Also called subscribed capital, issued share capital or subscribed share capital.
Does profit add to capital?
Profit is earned by the business in fiscal year and it is part of capital of the owner that's why it increases the capital of business because owners invest money to earn profit so it is shown in capital portion of balance sheet as an addition to capital.
Called up share capital?
Called-up capital is the part of a company's issued capital which the board of directors of the company has called upon the subscribers to make payment.
What is subscribed capital stock?
Subscribed share capital stock is that capital for which investors actually paid money or subscribed while unsubscribed capital is that part of issued capital for which nobody subscribed or nobody purchased stocks.
Compare mutual funds and stocks?
A share of stock represents ownership of part of a company. A share of a mutual fund represents ownership of part of a pool of stocks from many different companies. Mutuals are like pre-selected diversified portfolios.
Why might a company repay part of its share capital?
Its cash reserves exceed its requirements for the foreseeable future
