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

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Multiple Choice

The true owners of a corporation are the:

Board of Directors

Chief Executive Officer (CEO)

Creditors

Shareholders

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Understand the concept of ownership in a corporation: A corporation is a legal entity that is owned by individuals or entities who hold shares of its stock. These individuals or entities are known as shareholders.

Clarify the role of the Board of Directors: The Board of Directors is responsible for overseeing the management of the corporation and making major decisions, but they are not the owners of the corporation.

Clarify the role of the Chief Executive Officer (CEO): The CEO is an employee of the corporation who manages its day-to-day operations, but they are not the owners unless they also hold shares.

Clarify the role of creditors: Creditors are entities or individuals who lend money to the corporation. They have a financial interest but do not own the corporation.

Conclude that shareholders are the true owners of a corporation because they hold equity in the form of shares, which represent ownership in the corporation.