By Duane R. Milano
REA's necessities offer fast and simple entry to severe info in various various fields, starting from the main easy to the main complicated. As its identify implies, those concise, complete research publications summarize the necessities of the sector coated. necessities are valuable while getting ready for tests, doing homework and should stay an enduring reference resource for college students, lecturers, and execs. Accounting II comprises present liabilities, long term liabilities, bonds, partnerships, businesses, profits and dividends, consolidations, assertion of money flows, and monetary assertion research.
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Most plans are qualified. It would be much to the disadvantage for all concerned if an unqualified plan were set up. To the employer, the contributions would not be a tax expense. As a result of that, the employer will be likely to pass this cost on to the employees in the form of lower compensation. 3 FUNDED AND UNFUNDED A funded plan is one in which the employer makes pension payments to an independent funding agency. This agency is then responsible for accounting for all contributions to and disbursements from the fund.
The cumulative effect of the change on prior periods net income will be shown as a special item. The second step will be to show the effect on net income for the current period. 5 EARNINGS PER SHARE As a result of difference in size of companies, it is difficult to compare multiple companies in a specific industry or region. One way to assist in this comparison is to calculate the earnings per share of common stock (EPS). This is the number that is most often reported in the financial press and in the news.
However, the new financial statements should reflect the new number of shares outstanding. 10 EFFECT OF TREASURY STOCK If treasury stock exists, cash dividends will not be paid on the treasury stock. In the case of stock dividends, the dividend can be paid on shares outstanding, or shares issued. Both are acceptable. Treasury stock may be included in a stock split. 1 PARENT AND SUBSIDIARY COMPANY RELATIONSHIPS A corporation which owns more than 50% of the common stock of another corporation is known as a parent company.