ACC 504 Week 6 Discussion Questions 2015

| January 31, 2017

Question
First part
Question 1:Stockholders’ equity is an important heading in a corporate balance sheet. Let’s begin
the discussion of stockholders’ equity by asking: How is the stockholders’ equity section of a
corporate balance sheet different from that in a single-owner business?
Question 2: What are the main components of stockholders’ equity?
Question 3: Let’s talk about dividends! Why do companies give dividends? Are companies
required to declare dividends? What factors have to be considered by a company before giving a
dividend?
Second part
Question 1: Let’s begin our discussion by asking this question: When we already have the
income statement and balance sheet to tell us about the financial performance and financial health
of a company, why was there a need to require companies to prepare a statement of cash flows?
Question 2: Can a statement of cash flows be manipulated? If so, how?
Question 3: If a company has negative cash flow from operations, what types of things could
they do to improve the cash flow?

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