Statement Of Changes In Equity

Question 1

is a reconciliation of the beginning and ending balances in a company’s equity during a reporting period. It is not considered an essential part of the monthly financial statements, and so is the most likely of all the financial statements not to be issued. However, it is a common part of the annual financial statements.

Answer 1

Statement of Changes in Equity

Question 2

a financial statement prepared by corporations that details changes in the volume of retained earnings over some period. Retained earnings are profits held by a company in reserve in order to invest in future projects rather than distribute as dividends to shareholders.

Answer 2

Statement of Retained Earnings

Question 3

the maximum number of shares that a corporation is legally allowed to issue.

Answer 3

Authorized Capital Share

Question 4

portion of profits earned by the company’s board of directors that decides to pay off as dividends to the shareholders of such a company in return for the investment done by the shareholders through the purchase of the company’s securities. Such declaration of dividend creates a liability in the books of the concerned company.

Answer 4

Dividends declared

Question 5

receive a fixed dividend as dividend obligations to preferred shareholders must be satisfied first.

Answer 5

Preferred Shares

Question 6

the distribution of a company’s earnings to its shareholders and is determined by the company’s board of directors. They are often distributed quarterly and may be paid out as cash or in the form of reinvestment in additional stock.

Answer 6

Dividends

Question 7

retained earnings that are specified by the board of directors for a particular use. It can be used for many purposes, including acquisitions, debt reduction, stock buybacks, and R&D.

Answer 7

Appropriated Retained Earnings

Question 8

help to determine the amount of dividends that will be paid to shareholders. They are not directed towards a specific purpose by the board and therefore are available to be paid out as dividends. The greater the _____, the higher the dividend that can possibly be paid. _____ are divided among all of the outstanding shares of the company and paid as dividends according to a predetermined dividend payment schedule.

Answer 8

Unappropriated Retained Earnings

Question 9

are a firm’s cumulative net earnings or profit after accounting for dividends. They’re also referred to as the earnings surplus.

Answer 9

Retained Earnings

Question 10

The part of the amount of issued capital which is taken by the people.
Amount of capital issued to the general public

Answer 10

Subscribed Capital

Question 11

Part of called up capital which actually paid by the shareholders. Therefore it is known as the real capital of the company.

Answer 11

Paid-up Capital

Question 12

are the total number of shares issued and actively held by stockholders—both outside investors and corporate insiders. However, they must be actual shares.

Answer 12

Shares Outstanding

Question 13

are issued to business owners and other investors as proof of the money they have paid into a company. Of all shareholders, its shareholders have the least claim on a company’s assets.

Answer 13

Common shares

Question 14

What are the primary causes for changes in equity

Answer 14

Additional Capital Contributions
Net Income Earned in a period
Dividends distributed
Other Comprehensive Income incurred in a period