Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

12. Stockholders' Equity

Characteristics of a Corporation

Financial Accounting

12. Stockholders' Equity

Characteristics of a Corporation

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Authorized common stock refers to the total number of shares:

that have been issued and are currently held by shareholders

that are outstanding and available for trading in the open market

that have been repurchased by the corporation and are held as treasury stock

that a corporation is permitted to issue according to its corporate charter

Previous problemNext problem

Verified step by step guidance

Understand the concept of 'Authorized Common Stock': It refers to the maximum number of shares a corporation is legally allowed to issue, as specified in its corporate charter.

Differentiate between 'Authorized Common Stock' and other types of stock: Issued stock refers to shares that have been distributed to shareholders, outstanding stock refers to shares currently held by shareholders and available for trading, and treasury stock refers to shares repurchased by the corporation.

Recognize that 'Authorized Common Stock' is not necessarily the same as issued or outstanding stock. A corporation may choose to issue fewer shares than the authorized amount.

Refer to the corporate charter to determine the number of shares authorized. This document outlines the legal limit on the number of shares the corporation can issue.

Understand the importance of 'Authorized Common Stock' in financial accounting: It sets the upper limit for the corporation's ability to raise capital through equity issuance and is a key figure in stockholder equity analysis.