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

Which of the following statements is true of the board of directors of a corporation?

The board of directors is responsible for auditing the corporation's financial statements.

The board of directors is appointed by the chief executive officer (CEO).

The board of directors manages the day-to-day operations of the corporation.

The board of directors is elected by the shareholders to oversee the management of the corporation.

Previous problemNext problem

Verified step by step guidance

Understand the role of the board of directors in a corporation. The board of directors is a governing body elected by the shareholders to oversee the management and strategic direction of the corporation.

Clarify that the board of directors does not manage the day-to-day operations of the corporation. This responsibility typically falls to the executive management team, including the CEO.

Note that the board of directors is not appointed by the CEO. Instead, they are elected by the shareholders during annual meetings or other voting processes.

Explain that the board of directors is not responsible for auditing the corporation's financial statements. Auditing is typically performed by external auditors or an internal audit team, and the board may review the audit results.

Conclude that the correct statement is: 'The board of directors is elected by the shareholders to oversee the management of the corporation.' This reflects their primary role in governance and oversight.