Explain how accounting information assists in making decisions.

1. Presented By:
Instructor : Sir, Bilal Khan
60 Azamul Haq 88 Arslan Sajjad
49 Shehroz Aslam 48 Shahrukh Durrani
64 Shahbaz Ali Sahu 84 Zahid Iqbal

3.  The definition of cooperation is people working
together to achieve results or people helping
each other out to achieve a common goal.
 An example of cooperation is when one person
hands you a brick and you lay the brick.
 The act of cooperating; joint effort or operation
 The association of a number of people in an
enterprise for mutual benefits or profits
 An interaction between organisms that is largely
beneficial to all those participating

4.  No personal liability for Stockholders.
 Ease of accumulating capital.
 Readily transferable ownership shares.
 Continuous existence.
 Professional management

5.  Heavy taxation
 Greater regulation
 Separation of ownership and control

6.  Stage l Promotion
 Stage ll In corporation (SECP)
 Stage lll Raising Of capital
 Stage lV Commencement of business

7.  Chartered Companies (Bank of England)
 Statutory Company (state bank of Pakistan)
 Registered Company (Registered Company act) e.g.: Adamjee Co.
 Unlimited Companies i.e. (Partnership Liability is unlimited)
 Companies Limited By Guarantees (liability depends on guaranteed
amount)
 Companies Limited By Stock
(i) Private Limited Company (2-50 Members) no investors
(ii)Public Limited Company > 7 persons investors

8.  The right to sell their shares.
 The right to vote on the directors nominated by the
board.
 The right to nominate directors (although this is very
difficult in practice because of minority protections)
and propose shareholder resolutions.
 The right to dividends if they are declared.
 The right to purchase new shares issued by the
company.
 The right to what assets remain after a liquidation.

9.  1) Recruit, supervise, retain, evaluate and
compensate the manager.
 2) Provide direction for the organization.
 3) Establish a policy based governance system.
 4) Govern the organization and the relationship
with the CEO.
 5) Fiduciary duty to protect the organization’s
assets and member’s investment.
 6) Monitor and control function

10.  A corporate officer is a person employed by a
corporation who holds an office such as president,
vice-president, secretary or treasurer. Officers are
appointed to their position by a corporation's board
of directors. Officers' responsibilities vary depending
on what powers the corporation has specifically given
them. Officers are agents of the corporation, and,
therefore, they have fiduciary duties to the
corporation called the duty of loyalty and the duty of
care.

11.  They shall at all times strive to achieve perfection in
the performance
 Work fairly and objectively with the Board,
Management and stockholders;
 Have appropriate administrative and interpersonal
skills;
 If he is not at the same time the corporation’s legal
counsel, be aware of law
 Have a knowledge of the operations of the
corporation;
 Ensure that all Board procedures, rules and
regulations are strictly followed by the members;

13.  The portion of the balance sheet that
represents the capital received from investors
in exchange for stock (paid-in capital),
donated capital and retained earnings.
www.investopedia.com

14.  A cash dividend is money paid to
stockholders, normally out of the
corporation's current earnings or
accumulated profits. Not all companies pay a
dividend. Usually, the board of directors
determines if a dividend is desirable for their
particular company based upon various
financial and economic factors.
www.investopedia.com/

15.  The common and preferred stock a company
is authorized to issue, according to their
corporate charter. Capital stock represents
the size of the equity position of a firm and
can be found on the balance sheet (or notes)
of a typical financial statement.
 SEC authorization required

16.  Par value
 is the face value of a bond. It is the principal
amount that the lender (investor) is lending
to the borrower (issuer).
 market value
 The amount for which something can be sold
on a given market.

17.  A security that represents ownership in a
corporation. Holders of common stock exercise
control by electing a board of directors and
voting on corporate policy. Common
stockholders are on the bottom of the priority
ladder for ownership structure. In the event of
liquidation, common shareholders have rights to
a company's assets only after bondholders,
preferred shareholders and other debt holders
have been paid in full.
 In the U.K., these are called "ordinary shares."

18.  A class of ownership in a corporation that has
a higher claim on the assets and earnings
than common stock. Preferred stock generally
has a dividend that must be paid out before
dividends to common stockholders and the
shares usually do not have voting rights.

19.  Preferred as to dividends
 Cumulative dividend rights
 Proffered as to assets in event of the
liquidation of the company
 Callable at the option of the corporation
 No voting power

20.  Kashif & co.Ltd.was newly formed with an authorized capital
of Rs: 500,000 divided into 5000 shares of Rs:100 each.The
co. issued 4,000 shares.Applications of 4,000 shares were
received These shares were alloted.Pass the journal
Bank account 400,000
To share application accounts 400,000