11-股东权益-缴入股本(48).pptVIP

4 End of chapter 11. The executive management team manages the day-to-day decisions for the corporation. Learning objective number 4 is to account for paid-in capital and prepare the equity section of a corporate balance sheet. Stockholders’ equity can be increased in two ways. First, equity is increased by issuing stock to investors. This is an increase in Paid-in Capital. Second, equity is increased by the retention of profits earned by the corporation. This is an increase in Retained Earnings. There are several terms related to stock that must be understood. Authorized shares is the