Discuss How Technology Based Information Systems Affect Accounting

question 24

Essay

Discuss how technology based information systems affect accounting.

Understand the characteristics and types of corporations.

Recognize the accounting implications of share transactions and treasury stock.

Comprehend the legal and financial distinctions between common and preferred stock.

Identify the corporate governance structure and roles of key officers.

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Definitions:

Retained Earnings

The amount of net earnings left over for the company after it has paid out dividends to its shareholders.

Dividend Declarations

The announcement by a company's board of directors to pay a dividend to its shareholders, specifying the amount and date.

Investing Activities

Refers to financial transactions involving the acquisition or disposal of long-term assets and investments not related to the entity's primary business operations.