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Equity

FAR Chapter 18 · Area II · Blueprint II.I

Equity is what is left for the owners, and almost nothing that happens inside it touches the income statement. The Blueprint asks you to account for stock issuances, stock dividends and splits, and treasury stock, and to calculate the capital accounts of pass-through entities such as partnerships. The entries are short, but the exam checks that you know which equity account moves and that no gain or loss is ever recorded on a company's dealings in its own shares.

In this chapter

1. Issuing stock
2. Preferred stock and sharing dividends
3. Cash, property and liquidating dividends
4. Stock dividends and stock splits
5. Treasury stock
6. Capital accounts of pass-through entities
7. Dividing partnership income
8. Partners joining, leaving and liquidating

This chapter has 8 lessons, 50 practice MCQs with explanations and 10 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Stock issuance
• stock dividends and splits
• treasury stock
• capital accounts of pass-through entities

Chapter 17: Debt · Chapter 19: Accounting changes and error corrections