中级财务会计英文版第十章课后题答案Word格式.docx

中级财务会计英文版第十章课后题答案Word格式.docx

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Question18-1

Thetwoprimarysourcesofshareholders’equityareamountsinvestedbyshareholdersinthecorporationandamountsearnedbythecorporationonbehalfofitsshareholders.Investedcapitalisreportedaspaid-incapitalandearnedcapitalisreportedasretainedearnings.

Question18-2

Thethreeprimarywaysacompanycanbeorganizedare

（1）asoleproprietorship,

（2）apartnership,or（3）acorporation.Transactionsareaccountedforthesameregardlessoftheformofbusinessorganizationwiththeexceptionofthemethodofaccountingforcapital–theownershipinterestinthecompany.Severalcapitalaccounts（asdiscussedinthischapter）areusedtorecordchangesinownershipinterestsforacorporation,ratherthanrecordingallchangesinownershipinterestsinasinglecapitalaccountforeachowner,aswedoforsoleproprietorshipsandpartnerships.

Question18-3

Intheeyesofthelaw,acorporationisaseparatelegalentity–separateanddistinctfromitsowners.Theownersarenotpersonallyliablefordebtsofthecorporation.So,shareholdersgenerallymaynotlosemorethantheamountstheyinvestwhentheypurchaseshares.Thisisperhapsthesinglemostimportantadvantageofcorporateorganizationoveraproprietorshiporapartnership.

Question18-4

“Not-for-profit”corporations,suchaschurches,hospitals,universities,andcharities,arenotorganizedforprofitanddonotsellstock.Somenot-for-profitcorporations,suchastheFederalDepositInsuranceCorporation（FDIC）,aregovernmentowned.

Question18-5

Corporationsthatareorganizedforprofitmaybepubliclyheldorprivately（orclosely）held.Thestockofpubliclyheldcorporationsisavailableforpurchasebythegeneralpublic.Sharesmightbetradedonorganizednationalstockexchangesavailable“over-the-counter”fromsecuritiesdealers.Privatelyheldcompanies'

sharesareheldbyonlyafewindividualsandarenotavailabletothegeneralpublic.

Question18-6

Corporationsareformedinaccordancewiththecorporationlawsofindividualstates.TheModelBusinessCorporationActservesastheguidetostatesinthedevelopmentoftheircorporationstatutes,presentlyasthemodelforthemajorityofstates.

AnswerstoQuestions（continued）

Question18-7

Theownershiprightsheldbycommonshareholders,unlessspecificallywithheldbyagreementwiththeshareholders,are:

a.Therighttovoteonpolicyissues.

b.Therighttoshareinprofitswhendividendsaredeclared（inproportiontothepercentageofsharesownedbytheshareholder）.

c.Therighttoshareinthedistributionofanyassetsremainingatliquidationafterotherclaimsaresatisfied.

Question18-8

The“preemptiveright”istherighttomaintainone’spercentageshareofownershipwhennewsharesareissued.Whengranted,eachshareholderisofferedtheopportunitytobuythesamepercentageofanynewsharesissuedasthepercentageofshareshe/sheownsatthetime.Forreasonsofpracticality,thepreemptiverightusuallyisexcluded.

Question18-9

Thetypicalrightsofpreferredsharesusuallyincludeoneorbothofthefollowing:

a.Apreferencetoapredesignatedamountofdividends,i.e.,astateddollaramountpershareor%ofparvaluepershare.Thismeansthatwhentheboardofdirectorsofacorporationdeclaresdividends,preferredshareholderswillreceivethespecifieddividendpriortoanydividendsbeingpaidtocommonshareholders.

b.Apreferenceovercommonshareholdersinthedistributionofassetsintheeventthecorporationisdissolved.

Question18-10

Ifpreferredsharesarenoncumulative,dividendsnotdeclaredinanygivenyearneedneverbepaid.However,ifcumulative,whenthespecifieddividendisnotpaidinagivenyear,theunpaiddividendsaccumulateandmustbemadeupinalaterdividendyearbeforeanydividendsarepaidoncommonshares.Theseunpaiddividendsarecalled“dividendsinarrears.”

Question18-11

Parvaluewasdefinedbyearlycorporationlawsastheamountofnetassetsnotavailablefordistributiontoshareholders（asdividendsorotherwise）.However,nowtheconceptsof“parvalue”and“legalcapital”havebeeneliminatedentirelyfromtheModelBusinessCorporationAct.Mostsharescontinuetobeararbitrarilydesignatedparvalues,typicallynominalamounts.Althoughmanystatesalreadyhaveadoptedtheseprovisions,mostestablishedcorporationsissuedsharespriortochangesinthestatestatutes.So,mostcompaniesstillhaveparvaluesharesoutstandingandcontinuetoissuepreviouslyauthorizedparvalueshares.

Question18-12

Comprehensiveincomeisabroaderviewofthechangeinshareholders’equitythantraditionalnetincome.Itisthetotalnonownerchangeinequityforareportingperiod.Itencompa