Chapter
11
reporting
and
Interpreting
Owners’
Equity
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
McGraw­Hill/Irwin
Copyright © 2014 by The McGraw­Hill Companies, Inc. All rights reserved.
Understanding
The
Business
Advantages
of
a
corporation
Simple
to
Easy
to
Provides
become
an
transfer
limited
owner
ownership
liability
Because
a
corporation
is
a
separate
legal
entity,
it
can
.
.
.
Own assets.
Incur
liabilities.
Sue
and
be
sued.
Enter
into
contracts.
11-2
Ownership
of
a
Corporation
S
to
c k h
o
ld
e rs
(O
w
n
e rs
o
f
v o
tin g
s h
a re s )
B o a rd o f D ire c to rs
In te rn a l (m a n a g e rs ) a n d
E x te rn a l (n o n -m a n a g e rs )
Elected by
shareholders
Appointed
by
directors
P
re s id
e n
t
V
ic e
P
re s id
e n
t
V
ic e
P
re s id
e n
t
V
ic e
P
re s id
e n
t
V
ic e
P
re s id
e n
t
(P
ro
d
u
c tio
n
)
(M
a rk e tin
g )
(F in
a n
c e )
(C
o
n
tro lle r)
11-3