Explain accounting for corporations theory (and how it works)

• describe types of corporations (e.g., public, private, not-for-profit) and classes of shares (e.g., common, preferred, voting);

• record transactions related to common and preferred stocks (e.g., issue, buy back, subscriptions); record transactions related to the declaration and distribution of dividends;

• compare the impact of various forms of dividend distribution (e.g., cash dividends, stock dividends, stock splits) on shareholders equity;

• prepare the financial statements for a corporation, including an income statement, a statement of retained earnings, and the shareholders equity section of the balance sheet