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

In the context of a corporation, what do shareholders essentially own?

The corporation's debts and liabilities

Shares of stock representing ownership in the corporation

The day-to-day management of the corporation

The physical assets of the corporation

Previous problemNext problem

Verified step by step guidance

Understand the concept of shareholders in a corporation: Shareholders are individuals or entities that own shares of stock in a corporation, which represent partial ownership of the company.

Clarify what shares of stock represent: Shares of stock signify ownership in the corporation, entitling shareholders to a portion of the corporation's profits and, in some cases, voting rights in corporate decisions.

Differentiate ownership from other aspects: Shareholders do not directly own the corporation's physical assets, debts, or liabilities. Instead, they own a financial interest in the corporation through their shares.

Explain the role of day-to-day management: The day-to-day management of the corporation is typically handled by executives and managers, not shareholders. Shareholders may influence management indirectly through voting rights or board elections.

Summarize the correct answer: Shareholders essentially own shares of stock, which represent ownership in the corporation, rather than its physical assets, debts, or management responsibilities.