Accounting Tools

NOVEMBER 2, 2023

Related Courses Capital Budgeting Corporate Finance Financial Analysis What is the Opportunity Cost of Capital? The opportunity cost of capital is the incremental return on investment that a business foregoes when it elects to use funds for an internal project, rather than investing cash in a marketable security.

Financial Analysis 74

Financial Analysis Corporate Finance Budgeting 74

Accounting Tools

JULY 28, 2023

Related Courses Corporate Finance The Balance Sheet What is No Par Value Stock? No par value stock is shares that have been issued without a par value listed on the face of the stock certificate. If common stock has no par value, a company prints "no par value" on the face of any stock certificates that it issues.

Corporate Finance 76

Corporate Finance Accounting Accounting 76

Accounting Tools

OCTOBER 11, 2023

All equity accounts, with the exception of the treasury stock account, have natural credit balances. Common Stock Common stock is the par value of the stock sold directly to investors. Common Stock Common stock is the par value of the stock sold directly to investors.

Accounting 76

Accounting Accounting Bookkeeping Auditing 76

Accounting Tools

JULY 24, 2023

Common Stock Account The common stock account is used to accumulate the total amount of funds paid to a business for the par value of the shares that it sells to investors. Since par value is usually quite low, the balance in this account can be much higher than the balance in the common stock account.

Accounting 74

Accounting Accounting Corporate Finance 74

Accounting Tools

DECEMBER 28, 2023

How to Calculate the Long-Term Debt to Equity Ratio To derive the ratio, divide the long-term debt of an entity by the aggregate amount of its common stock and preferred stock.

Financial Statements 75

Financial Statements 75

Accounting Tools

JULY 24, 2023

Common Stock The common stock account contains that portion of the price paid by investors for a company's common stock that is attributable to the par value of the stock. If the stock has no par value, then this account is not used. If the stock has no par value, then this account is not used.

Accounting 72

Accounting Accounting Bookkeeping 72

Accounting Tools

AUGUST 7, 2023

Related Courses Capital Budgeting Financial Analysis What is the Formula for the Cost of Equity? This cost represents the amount the market expects as compensation in exchange for owning the stock of the business, with all the associated ownership risks. The current market value of the stock is $20. government security.

Financial Analysis 75

Financial Analysis Budgeting 75

Accounting Tools

OCTOBER 21, 2023

Related Courses Working Capital Management Zero working capital is a situation in which there is no excess of current assets over current liabilities to be funded. Working capital is the difference between current assets and current liabilities, and is primarily comprised of accounts receivable , inventory , and accounts payable.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Computation 75

Accounting Tools

DECEMBER 22, 2023

What is Nominal Capital? Nominal capital is the aggregate par value of those shares that have been issued by a corporation. In cases where there is no par value at all, a firm has no nominal capital. Example of Nominal Capital A business sells 1,000,000 shares of its common stock to investors. par value per share).

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40

Accounting Tools

AUGUST 3, 2023

Shareholders' funds are usually considered to be comprised of the common stock , preferred stock , retained earnings , and treasury stock accounts. Related Articles Assessable Capital Stock How to Calculate Stockholders’ Equity How to Calculate Total Equity Types of Equity

Tax 75

Tax Accounting Accounting 75

Accounting Tools

JULY 31, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is Capitalization? Capitalization is the recordation of a cost as an asset , rather than an expense. Capitalization is also based on the concept of materiality. When is Capitalization Used?

Record Keeping 75

Record Keeping Financial Statements Computation Budgeting 75

Accounting Tools

DECEMBER 12, 2023

What is Assessable Capital Stock? Assessable capital stock is shares in a financial institution that expose shareholders to an assessment above the amount they paid for the shares. This type of stock is different from the normal situation, where shareholders can only lose the amount they invested in the shares they own.

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40

Accounting Tools

APRIL 9, 2024

What is Reacquired Stock? Reacquired stock is shares that the issuing entity has purchased back from investors. Reasons to Reacquire Stock There are several reasons why a business might elect to reacquire stock, including the following items: Alter capital structure. This may be at an elevated stock purchase price.

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 12, 2023

An alternative approach for calculating total equity is to add up all of the line items in the stockholders' equity section of the balance sheet, which is comprised of common stock , additional paid-in capital , and retained earnings , minus treasury stock.

Financial Statements 75

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 75

Accounting Tools

NOVEMBER 26, 2023

What is a Stock Dividend? A stock dividend is the issuance by a corporation of its common stock to its common shareholders without any consideration. If the issuance is for a greater proportion of the previously outstanding shares, then treat the transaction as a stock split.

Accounting 40

Accounting Accounting 40

Accounting Tools

JULY 15, 2023

What is Authorized Capital Stock? Authorized capital stock is the maximum number of shares that a corporation is legally allowed to issue. This restriction applies to both common stock and preferred stock.

Financial Statements 40

Financial Statements 40

Accounting Tools

OCTOBER 19, 2023

Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is a Simple Capital Structure? A corporation with a simple capital structure does not have any securities outstanding that could potentially dilute the value of its earnings per share.

Corporate Finance 40

Corporate Finance Financial Statements Financial Analysis 40

Accounting Tools

AUGUST 2, 2023

For example, it could separately identify the par value of common stock , additional paid-in capital , retained earnings , and treasury stock, with all of these elements then rolling up into the ending equity total. Thus, there are different accounts for the par value of stock, additional paid-in capital, and retained earnings.

General Ledger 74

General Ledger Financial Statements Accounting Accounting 74

Accounting Tools

MARCH 19, 2024

Check printing charges are the fee imposed by a bank when an account holder orders additional check stock. Check printing charges are not capitalized, even though the related check stock may not be completely used for an extended period of time; the reason is that this expenditure is too minor to be classified as an asset.

Accounting 40

Accounting Accounting 40

Accounting Tools

NOVEMBER 1, 2023

Related Courses Corporate Finance Treasurer's Guidebook Share capital refers to the funds that a company raises from selling shares to investors. For example, the sale of 1,000 shares at $15 per share raises $15,000 of share capital. There are two general types of share capital, which are common stock and preferred stock.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

AUGUST 5, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Common Stock Ratio? The common stock ratio measures the proportion of a company's total capitalization that is comprised of common stock. The denominator includes all debt and equity of the business as of the measurement date.

Financial Statements 40

Financial Statements 40

Accounting Tools

SEPTEMBER 9, 2023

To calculate this market value, multiply the current market price of a company's stock by the total number of shares outstanding. This calculation should be applied to all classifications of stock that are outstanding, such as common stock and all classes of preferred stock. These factors are: Illiquid market.

Financial Analysis 75

Financial Analysis 75

Accounting Tools

DECEMBER 10, 2023

What is Market Capitalization? Market capitalization is the total value of a firm’s outstanding shares , based on their current market price. The market capitalization concept is used to obtain a rough estimate of the value assigned to a business by the investment community.

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Accounting Tools

JULY 30, 2023

What is Voting Stock? Voting stock is shares in a business that give its holders the right to vote for matters brought up during shareholder meetings. Common stock is usually considered to be voting stock. Terms Similar to Voting Stock Voting stock is also known as voting shares.

Auditing 40

Auditing 40

Accounting Tools

APRIL 29, 2024

What is Out of Stock? Out of stock is an inventory condition, stating that an item is not currently available for sale or use. An out of stock condition can cost a company a sale , so these items are usually closely monitored. There are several situations that can trigger an out of stock condition. Delayed stocking.

Accounting 40

Accounting Accounting 40

Accounting Tools

AUGUST 5, 2023

Related Courses Capital Budgeting Corporate Finance What is the Weighted Average Cost of Capital? The weighted average cost of capital (WACC) is a compilation of the aggregate financing cost of a business. The components of the cost of capital are common stock, preferred stock, and debt.

Corporate Finance 40

Corporate Finance Budgeting Tax Financial Analysis 40

Accounting Tools

JULY 13, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook The Balance Sheet What is a Capital Surplus? A capital surplus is the additional paid-in capital in excess of par value that an investor pays when buying shares from an issuing entity. Related Articles Capital in Excess of Par

Bookkeeping 40

Bookkeeping Accounting Accounting 40

Accounting Tools

MAY 21, 2023

Related Courses Accountants' Guidebook GAAP Guidebook The Balance Sheet What is the Premium on Common Stock? The premium on common stock is the difference between the par value of a share of stock and the price at which a business sells the share to investors. per share being a common amount.

Accounting 40

Accounting Accounting 40

Accounting Tools

DECEMBER 14, 2023

What is Redeemable Preferred Stock? Redeemable preferred stock is a type of preferred stock that allows the issuer to buy back the stock at a certain price and retire it, thereby converting the stock to treasury stock.

Corporate Finance 40

Corporate Finance 40

Accounting Tools

JULY 16, 2023

Related Courses Accountants' Guidebook GAAP Guidebook What is the Accounting for Stock Dividends? A stock dividend is the issuance by a corporation of its common stock to shareholders without any consideration. A stock dividend is never treated as a liability of the issuer , since the issuance does not reduce assets.

Accounting 40

Accounting Accounting 40

Accounting Tools

SEPTEMBER 6, 2023

A corporation is a legal entity, organized under state laws, whose investors purchase shares of stock as evidence of ownership in it. Source of capital. This is a particular advantage when its shares trade on a stock exchange , where it is easier to buy and sell shares. Ownership transfers.

Corporation Tax 75

Corporation Tax Tax 75

Accounting Tools

AUGUST 3, 2023

What is Capitalizing? If an expenditure is expected to be consumed over a longer period of time, then it can be capitalized , in which case it appears as an asset on the company’s balance sheet. Capitalization means that the recognition of a cost as an expense is deferred until a later period.

Bookkeeping 75

Bookkeeping Accounting Accounting 75

Accounting Tools

SEPTEMBER 26, 2023

Related Courses Corporate Finance Treasurer's Guidebook What is Callable Preferred Stock? Callable preferred stock is preferred shares in a business that can be bought back by the issuer at a certain price. The call price and other conditions are included in the indenture associated with the stock.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

DECEMBER 19, 2023

What is the Incremental Cost of Capital? The incremental cost of capital is the weighted-average cost of new debt and equity issuances during a reporting period. When investors feel that a firm’s incremental cost of capital is clearly too high, they will tend to avoid purchasing its debt, or will only do so at a significant discount.

Financial Analysis 40

Financial Analysis Budgeting 40

Accounting Tools

JULY 30, 2023

Related Courses Accountants' Guidebook GAAP Guidebook The Balance Sheet How to Account for Stock Stock is an ownership share in an entity, representing a claim against its assets and profits. If there are no residual assets in the event of a liquidation or sale, then the stock is worthless. The stock has a par value of $0.01.

Accounting 40

Accounting Accounting 40

Accounting Tools

JANUARY 12, 2024

What is Non-Participating Preferred Stock? Non-participating preferred stock is preferred stock that specifically limits the amount of dividends paid to its holders. This usually means that there is a specifically-mandated dividend percentage stated on the face of the stock certificate.

Corporate Finance 40

Corporate Finance 40

Accounting Tools

DECEMBER 10, 2023

What is a Qualified Stock Option? A qualified stock option confers special tax benefits on the employees of a corporation. This stock option is not reportable as taxable income to the employee at the time of grant, nor when the employee later exercises the option to buy stock.

Tax 40

Tax Accounting Accounting 40