Characteristics of the corporate form of organization.
Define the essence of the corporate form of entity.
Describe the process by which a corporation is formed, and how business operations commence.
Cite and explain the advantages of the corporate form of organization.
What is a prospectus?
Cite and explain the disadvantages of the corporate form of organization.
Generally describe the regulatory environment for issuing stock to the public.
Common and preferred stock.
Distinguish between common and preferred stocks, carefully detailing the rights and features of each class.
What is meant by the term "callable?"
What is meant by the term "convertible?"
What is the significance of par value?
Be able to prepare complete journal entries to record the issuance of par value stock.
How is stock accounted for that is issued for assets other than cash?
Describe the important dates that pertain to dividends.
When are journal entries recorded for dividend transactions?
How are declared but unpaid dividends reported in the financial statements?
Define "legal capital."
Note the distinction between "additional paid-in capital" and "total paid-in capital."
Treasury stock.
What is treasury stock, and where is it positioned on a balance sheet?
Do gains and losses arise on treasury stock transactions? Why ?
Can retained earnings be increased or decreased as a result of treasury stock transactions? Explain
Stock splits and stock dividends.
Differentiate between a stock split and a stock dividend, and the related accounting significance of each.
What is a stock dividend?
What are the reasons for issuing stock dividends.