Chapter 11 Vocabulary Flashcards Preview

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Flashcards in Chapter 11 Vocabulary Deck (19):
1

cash dividend

A cash distribution of earnings by a corporation to its shareholders.

2

account form

The stock outstanding when a corporation has issued only one class of stock.

3

cumulative preferred stock

Stock that has a right to receive regular dividends that were not declared (paid) in prior years.

4

discount

The interest deducted from the maturity value of a note or the excess of the face amount of bonds over their issue price.

5

earnings per common share (EPS)

Net income per share of common stock outstanding during a period.

6

in arrears

Cumulative preferred stock dividends that have not been paid in prior years are said to be in arrears.

7

outstanding stock

The stock in the hands of stockholders.

8

par value

A dollar amount assigned to each share of stock.

9

preferred stock

A class of stock with preferential rights over common stock.

10

premium

The excess of the issue price of a stock over its par value or the excess of the issue price of bonds over their face amount.

11

prior period adjustment

The combination of direct materials and direct labor costs.

12

restrictions

Amounts of retained earnings that have been limited for use as dividends.

13

retained earnings statement

A summary of the changes in the retained earnings in a corporation for a specific period of time; such as a month or a year.

14

statement of stockholders’ equity

A summary of the changes in the stockholders’ equity in a corporation that have occurred during a specific period of time.

15

stock

Shares of ownership of a corporation.

16

stock dividend

A distribution of shares of stock to its stockholders.

17

stock split

A reduction in the par or stated value of a common stock and the issuance of a proportionate number of additional shares.

18

stockholders

The owners of a corporation.

19

treasury stock

Stock that a corporation has once issued and then reacquires.