Accounting for Corporations

Accounting for Corporations: 5 Key Sections

In this chapter, we will explore the following sections:

1. Introduction to Accounting for Corporations: This section covers the definition and characteristics of a corporation, as well as the differences between a corporation and other forms of business organization.
2. Advantages of the Corporate Form of Organization: This section discusses the benefits of using the corporate form of organization, including continuous existence, no personal liability for owners, separation of management and ownership, and transferability of ownership shares.
3. Disadvantages of the Corporate Form of Organization: This section covers the drawbacks of the corporate form of organization, including double taxation, difficulty in control, and greater regulation.
4. Formation of a Corporation: This section covers the steps involved in forming a corporation, including obtaining a corporate charter, preparing articles of incorporation, going through the approval process, and issuing capital stock.
5. Corporate Capital Structure: This section discusses the various types of corporate capital stock, the process of issuing stock for cash or non-cash consideration, determining the par value of stock, and stock splits and stock dividends.