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STOCK HOLDER EQUITY

Submitted to: Madam Hina Samdani
DATE: 04-01-2011 BBA-II (D)

Reference: mainly taken from your lectures and some data from company’s official website
FINANCIAL ACCOUNTING
Submitted by:
Shafqat Ali
Faizan Ali
Adeel Murtaza
DanialQureshi
Imran Zahoor
SabtainZubair

INTRODUCTION

TOTAL STOCK HOLDER EQUITY: This is a portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings. Stockholders' equity represents the equity stake currently held on the books by affair’s equity investors.
It is calculated either as a firm's total assets minus its total liabilities or as share capital plus retained earnings minus treasury shares.
FOCAL POINT:
The problem is focused by such perspectives as follows.
a.The point which is being focused in this project is that the deep study of stock holder equity that consists brief of its all contents and terms related to it.
b.To understand the effects on stock holder equity when company issue shares, pay dividends, acquiring of assets against shares, treasury stock, retain earnings, and costs like organizingcost.
IMPORTANT ENOUGH: Why the problem is important enough to study. * It is a lay man’s concept that the stock holder equity is just about the net worth of the company but for the student of the financial accounting there is need to understand complete working of the stock holder equity. * How to treat with different contents of the equity. * After knowing the treatment, students can easily understand the financial position of every company. * In this problem every tiny particle will be discussed so that it will enhance the accounting concepts.
PURPOSE OF STUDY
Stockholders' equity is often referred to as

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