对外经贸会计专业英语Chap

对外经贸会计课件专业英语Chap第一页，共36页。Limitedpersonalliabilityforstockholders.Transferabilityofownership.Professionalmanagement.Continuityofexistence.AdvantagesofIncorporation第二页，共36页。Heavytaxation.Greaterregulation.Costofformation.Separationofownershipandmanagement.DisadvantagesofIncorporation第三页，共36页。PubliclyOwnedCorporationsFaceDifferentRules

ByLAW,publiclyownedcorporationsmust:PreparefinancialstatementsinaccordancewithGAAP.HavetheirfinancialstatementauditedbyanindependentCPA.Complywithfederalsecuritieslaws.SubmitfinancialinformationforSECreview.第四页，共36页。Thecostsassociatedwithincorporationareusuallyexpensedimmediately,butamortizedover5yearsfortaxpurposes.FormationofaCorporationEachcorporationisformedaccordingtothelawsofthestatewhereitislocated.TheapplicationforcorporatestatusiscalledtheArticlesofIncorporation.第五页，共36页。StockholdersRights

Voting(inpersonorbyproxy).

Proportionatedistributionofdividends.

Proportionatedistributionofassetsinaliquidation.RightsofStockholders第六页，共36页。UltimatecontrolStockholdersusuallymeetonceayear.RightsofStockholders第七页，共36页。UltimatecontrolStockholdersusuallymeetonceayear.Stockholderledgersareoftenmaintainedbyastocktransferagentorstockregistrar.RightsofStockholders第八页，共36页。Eachunitofownershipiscalledashareofstock.Astockcertificateservesasproofthatastockholderhaspurchasedshares.RightsofStockholders第九页，共36页。Whenthestockissold,thestockholdersignsatransferendorsementonthebackofthestockcertificate.RightsofStockholders第十页，共36页。Overallresponsibilityformanagingthecompany.SelectedbyavoteofthestockholdersFunctionsoftheBoardofDirectors第十一页，共36页。ChiefAccountantContractualandlegalrepresentationCustodianoffundsFunctionsoftheCorporateOfficers第十二页，共36页。Stockholders’EquityofaCorporation第十三页，共36页。Themaximumnumberofsharesofcapitalstockthatcanbesoldtothepublic.AuthorizedSharesAuthorizationandIssuance

ofCapitalStock第十四页，共36页。Issuedsharesareauthorizedsharesofstockthathavebeensold.Unissuedsharesareauthorizedsharesofstockthatneverhavebeensold.Usuallysharesaresoldthroughanunderwriter.AuthorizedSharesAuthorizationandIssuance

ofCapitalStock第十五页，共36页。UnissuedSharesTreasurySharesOutstandingSharesTreasurysharesareissuedsharesthathavebeenreacquiredbythecorporation.IssuedSharesOutstandingsharesareissuedsharesthatareownedbystockholders.AuthorizedSharesAuthorizationandIssuance

ofCapitalStock第十六页，共36页。Parvalueisanarbitraryamountassignedtoeachshareofstockwhenitisauthorized.Marketpriceistheamountthateachshareofstockwillsellforinthemarket.Stockholders’Equity第十七页，共36页。Commonstockcanbeissuedinthreeforms:No-ParCommonStockParValueCommonStockStatedValueCommonStockLet’sexaminethisformofstock.AllproceedscreditedtoCommonStockTreatedlikeparvaluecommonstockStockholders’Equity第十八页，共36页。Preparethejournalentrytorecordanissuanceof10,000sharesof$2parvaluestockfor$25persharewhichoccurredonSeptember1,2005.Record:Thecashreceived.Thenumberofsharesissued×theparvaluepershareintheCommonStockaccount.TheremainderisassignedtoContributedCapitalinExcessofPar.IssuanceofParValueStock第十九页，共36页。Thejournalentrytorecordanissuanceof10,000sharesof$2parvaluestockfor$25pershareonSeptember1,2005,shouldincludeacredittocommonstockfortheparvalueofthesharesissued.IssuanceofParValueStock第二十页，共36页。IssuanceofParValueStock第二十一页，共36页。Aseparateclassofstock,typicallyhavingpriorityovercommonsharesin...Dividenddistributions(rateisusuallystated).Distributionofassetsincaseofliquidation.Cumulativedividendrights.Normallyhasnovotingrights.Usuallycallablebythecompany.OtherFeaturesInclude:PreferredStock第二十二页，共36页。Vs.NoncumulativeCumulativeDividendsinarrearsmustbepaidbeforedividendsmaybepaidoncommonstock.Undeclareddividendsfromcurrentandprioryearsdonothavetobepaidinfutureyears.CumulativePreferredStock第二十三页，共36页。Example:ConsiderthefollowingpartialStatementofStockholders’Equity.During2004,thedirectorsdeclarecashdividendsof$5,000.Inyear2005,thedirectorsdeclarecashdividendsof$42,000.StockPreferredastoDividends第二十四页，共36页。Example:ConsiderthefollowingpartialStatementofStockholders’Equity.During2000,thedirectorsdeclarecashdividendsof$5,000.Inyear2001,thedirectorsdeclarecashdividendsof$42,000.StockPreferredastoDividends第二十五页，共36页。Ijustconverted100sharesofpreferredstockinto1,000sharesofcommonstockandendedupwithahigherdividendyield!Gee,Ican’tdothatwithMYpreferredstock!Somepreferredstockisconvertibleintosharesofcommonstock.OtherFeaturesofPreferredStock第二十六页，共36页。PreferredStock第二十七页，共36页。Ilovethisstuff!Canwedosomemore?第二十八页，共36页。Accountingbytheissuer.Accountingbytheinvestor.Commonstockiscarriedatoriginalissueprice.Investmentsinmarketablesecuritiesarecarriedatmarketvalue.MarketValue第二十九页，共36页。

Factorsaffectingmarket

priceofpreferredstock:DividendrateRiskLevelofinterestratesThereturnbasedonthemarketvalueiscalledthe“dividendyield.”MarketPriceofPreferredStock第三十页，共36页。

Factorsaffectingmarketpriceofcommonstock:Investors’expectationsoffutureprofitability.Riskthatthislevelofprofitabilitywillnotbeachieved.Changesinmarketvaluehavenoimpactonthebooksoftheissuer.MarketPriceofCommonStock第三十一页，共36页。BookValueperShare

ofCommonStockTotalStockholders’EquityNumberofCommonSharesOutstandingPreferredstockandpreferred

dividendsinarrearsarededucted

fromtotalstockholders’