Owner's Equity Basics

Question 1

What is typically the legal capital or minimum capital of a corporation?

Answer 1

-Par value of stock issued

Question 2

Can dividends be paid from legal capital?

Answer 2

-No

Question 3

How are undeclared dividends in arrears presented?

Answer 3

-As disclosures in the footnotes until paid

Question 4

What two classes of shares comprise issued shares?

Answer 4

-Outstanding shares and Treasury shares