Chapter 11 Flashcards Preview

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Flashcards in Chapter 11 Deck (13)
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1
Q

par value

A

company must sell stock @ assigned value

2
Q

paid in capital

A

total cash and other assets paid to Corp in exchange for stock

3
Q

treasury stock

A

company buys back stock but continues to use it

4
Q

outstanding stock

A

number of shares of issued stock being held by holders

5
Q

preferred stock

A
  • has dividend and assets during liquidation priority over common stock
  • usually no voting
6
Q

Shareholders benefits from owning stock

A

+voting; dividends
+preemptive right- keep same % of ownership
+residual claim of assets during liquidation

7
Q

cumulative dividends

A

preferred stockholders get paid current and unpaid dividends before c.stock

8
Q

Entry required on all dates except

A

record date

9
Q

declaration date

A
  • company authorizes cash dividends

- (Cash Dividends [D], Dividends payable [C])

10
Q

record date

A

company determines ownership of outstanding shares

11
Q

payment date

A
  • company pays cash dividend to holders

- (Dividends payable [D], Cash [C])

12
Q

stock dividend

A

company gives stock as dividend instead of cash

13
Q

To issue cash dividends Corp must

A
  1. Retained earnings
  2. Adequate cash
  3. Declared dividends