CXC CSEC Principles of Accounts (POA) exam guide: Section 10: Accounting for Corporations (Limited Liability Companies)
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CXC CSEC Principles of Accounts Exam Guide Section 10: ACCOUNTING FOR CORPORATION (LIMITED LIABILITY COMPANIES)
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SPECIFIC OBJECTIVES The students should be able to: |
CONTENT
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| 1. | Identify the essential features of a limited liability company;
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Nature of limited liability companies; public and profit.
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| 2. |
Outline the advantages and disadvantages of a limited liability company in relation to sole proprietorship and partnership;
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Advantages and disadvantages of limited liability companies.
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| 3. | Describe the various methods of raising capital available to limited liability companies;
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Methods of raising capital – equity (preference and ordinary shares), debt (debentures, bank loans) |
| 4. | Prepare journal entries to record the issue of shares and debentures;
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Issues of shares and debentures.
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| 5. | Identify the various components of shares and the rights of the owners of each type of share; |
Types of shares; rights and privileges of owners of each types of share. |
| 6. | Identify the various components of shareholder’s equity; |
Elements of shareholders' equity: share capital, reserves. |
| 7. | Calculate dividend payments for various types of shares; | Calculation of dividend payments.
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| 8. | Appropriate profits between dividends and reserves; | Appropriation of profits (dividends and reserves). |
| 9. | Prepare the final accounts of a limited liability company; | Final accounts of limited liability companies. |
| 10. | Analyze performance and position using ratios; | Calculation and interpretation of accounting ratios. |
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