The rights of common stockholders typically include which of the following? Right to distribution of assets in liquidation. Right to dividends when declared.
Which of the following would be found on a statement of stockholders equity?
What accounts can be found on a statement of stockholders’ equity? Treasury stock, accumulated other comprehensive income, and retained earnings.
Which of the following ratios measures the ability of a company management to generate earnings from the resources owners provide?
The asset turnover ratio measures a company’s ability to efficiently generate revenues from its assets. In other words, the asset turnover ratio calculates sales as a percentage of the company’s assets. The ratio is effective in showing how many sales are generated from each dollar of assets a company owns.
What are the three main profitability ratios?
The three most common ratios of this type are the net profit margin, operating profit margin and the EBITDA margin.
What is a good efficiency ratio for business?
An efficiency ratio of 50% or under is considered optimal. If the efficiency ratio increases, it means a bank’s expenses are increasing or its revenues are decreasing.
What are the five elements of shareholders equity?
The statement of shareholders’ equity typically includes the following components:
- Preferred stock. …
- Common stock. …
- Treasury stock. …
- Additional paid-up capital. …
- Retained earnings. …
- Unrealized gains and losses.
What does the balance sheet show?
A balance sheet is a summary of all of your business assets (what the business owns) and liabilities (what the business owes). At any particular moment, it shows you how much money you would have left over if you sold all your assets and paid off all your debts (i.e. it also shows ‘owner’s equity’).
Which of the following best describes the matching concept in accounting?
The matching concept is a founding principle of accounting. In general, it means that expenses are recorded (matched) with the income that is generated from those expenses.
Which of the following is subject to double taxation quizlet?
Terms in this set (69) A sole proprietorship is subject to double taxation in that any earnings are taxed both as income to the business and as income to the owner of the business. In terms of total net income, sole proprietorships are the largest forms of business ownership.
What influence do shareholders have?
Owners have the most impact, as they make decisions about the activities of the business and provide funding to enable it to start up and grow. Shareholders influence the objectives of the business. Managers make some recommendations and decisions that influence the business’ activity.
Which of the following are included in the duties of the board of directors?
What are a Board Member’s Responsibilities?
- Establishing the Organization’s Mission and Purpose. …
- Executive Director-Selecting, Supporting, Reviewing. …
- Organizational Planning. …
- Monitoring and Managing Financial Resources. …
- Assessing and Developing Skills. …
- Serve on Committees. …
- Recruiting New Board Members.
What power does a minority shareholder have?
One power that minority shareholders have is to make a derivative claim against a director or officer within a company who the minority shareholders believe is not acting within their fiduciary responsibility, such as using company funds for personal use or misleading their investors.
What documents can a shareholders entitled to see?
The main documents of interest to shareholders will be the company’s annual report and accounts. Each shareholder has the right to receive these when they’re issued generally and on request. Shareholders also have the right to receive a copy of any written resolution proposed by either the directors or shareholders.
What basic rights does a shareholder possess?
right to the offer of shares by the company at the time of further issue of shares; right to receive dividends; right to participate and vote in general meetings; right to elect and remove directors; Page 3 right to contest election to the position of director; right to appoint auditors and fix their remuneration; …
What is the most important part of the balance sheet?
Many experts consider the top line, or cash, the most important item on a company’s balance sheet. Other critical items include accounts receivable, short-term investments, property, plant, and equipment, and major liability items. The big three categories on any balance sheet are assets, liabilities, and equity.
How do you know if a balance sheet is correct?
On your business balance sheet, your assets should equal your total liabilities and total equity. If they don’t, your balance sheet is unbalanced. If your balance sheet doesn’t balance it likely means that there is some kind of mistake.
What makes a strong balance sheet?
Balance sheet depicts a company’s financial health. … Having more assets than liabilities is the fundamental of having a strong balance sheet. Further than that, companies with strong balance sheets are those which are structured to support the entity’s business goals and maximise financial performance.
What are the two most common components of shareholders equity?
The shareholders’ equity section of a corporate balance sheet consists of two major components: (1) contributed capital, which primarily reflects contributions of capital from shareholders and includes preferred stock, common stock, and additional paid-in capital3 less treasury stock, and (2) earned capital, which …
What are major items in shareholders equity?
Four components that are included in the shareholders’ equity calculation are outstanding shares, additional paid-in capital, retained earnings, and treasury stock.
Which one of the following is included in a balance sheet?
A balance sheet comprises assets, liabilities, and owners’ or stockholders’ equity. Assets and liabilities are divided into short- and long-term obligations including cash accounts such as checking, money market, or government securities. At any given time, assets must equal liabilities plus owners’ equity.
How do you measure efficiency in a business?
Efficiency is measured by dividing a worker’s actual output rate by the standard output rate and multiplying the outcome by 100 percent.
What are the 5 major categories of ratios?
Ratio analysis consists of calculating financial performance using five basic types of ratios: profitability, liquidity, activity, debt, and market.