ACC 423 Week 1
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Description
ACC 423 Week 1Individual Owners Equity Paper
Resources: Intermediate Accounting and Electronic Reserve Readings
Prepare a 700- to 1,050-word response to the following questions:
Why is it important to keep paid-in capital separate from earned capital?
As an investor, is paid-in capital or earned capital more important? Explain why.
As an investor, are basic or diluted earnings per share more important? Explain why.
Format your paper consistent with APA guidelines.
Discussion Questions
Why do companies offer stock options? Should stock option compensation be included as an expense when calculating an organizations net income? Explain why or why not. If so, how should the amount of expense be calculated?
What are some similarities and differences between common stock and preferred stock? As a shareholder, would you want preferred or common stock? Explain why. As a corporation, would you rather issue preferred or common stock? Explain why.
What is the purpose of a stock split? What are some benefits of a stock split for a company? What are some benefits for an investor? What is the effect to the market value of the stock?
What are the differences between basic and diluted earnings per share? What are the differences between the numerator and the denominator in the basic and diluted earnings per share calculations? As an investor, do you evaluate a company as a potential investment using basic or diluted earnings per share? Explain why.