01.04 Statement of Changes in Equity Flashcards
1
Q
What are the components of shareholders’ equity?
A
Capital contributed by owners (common stock)
Preferred shares
Treasury shares
Retained earnings
Accumulated OCI
Noncontrolling (minority) interest
2
Q
Common stock
A
Shares authorized under articles of incorporation
Shares issued (sold) to investors
Shares outstanding (issued shares less treasury shares)
3
Q
Preferred shares
A
Preferential rights to dividends and assets vs. common stock
4
Q
Treasury shares
A
Shares repurchased by the company
5
Q
Retained earnings
A
Cumulative earnings not paid as dividends
6
Q
Accumulated other comprehensive income
A
Cumulative amount of other unrealized gains or losses
7
Q
Noncontrolling (minority) interest
A
Equity portion of a consolidated subsidiary owned by others
