Chapter 13 Flashcards Preview

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Flashcards in Chapter 13 Deck (34):
1

Restriction of a portion of retained earnings that is recorded by a journal entry

Appropriation of Retained Earnings

2

Maximum number of shares of stock that the corporate charter allows the corporation to issue

Authorized Stock

3

Represent's the individual's ownership of the corporation's capital

Capital Stock

4

Represents the basic ownership of a corporation

Common Stock

5

Blank stock whose owner must receive all dividends in arrears plus the current year dividend before the corporation pays dividends to common stockholders

Cumulative Preferred Stock

6

Debit balance in the Retained Earnings account

Deficit

7

Amount below par at which a stock is issued

Discount

8

Distribution of a company's earnings to stockholders

Dividend

9

If cumulative dividend has not been paid for the year

Dividend in Arrears

10

Amount of a company's net income for each share of its outstanding common stock

Earnings per Share

11

Price the stock initially sells for the first time it is sold

Issue Price

12

Stock the has been distributed but may or may not be held by stockholders

Issued Stock

13

Stock dividend great than 20% - 25% of the issued and outstanding stock

Large Stock Dividend

14

Portion of stockholders' equity that cannot be used for dividends

Legal Capital

15

Entry in the journal that notes a significant event but has no debit or credit amount

Memorandum Entry

16

Stock that has no amount assigned to it

No-Par Stock

17

Preferred stock whose owners do not receive passed dividends

Noncumulative Preferred Stock

18

Issued stock in the hands stockholders

Outstanding Stock

19

Amounts received from the stockholders of a corporation in exchange for stock

Paid-In Capital

20

Amounts received from stockholders in excess of par value

Paid-In Capital in Excess of Par

21

Amount assigned by a company to a share of its stock

Par Value

22

Stockholder's ability to maintain their proportionate ownership in the corporation

Preemptive Right

23

Stock that gives owners certain advantages over other stockholders

Preferred Stock

24

Amount above par at which stock is issued

Premium

25

Ratio of market price of a share of common stock to the company's earnings per share

Price/Earnings Ratio

26

Correction to Retained Earnings for an error of an earlier Period

Prior-Period Adjustment

27

Relationship between net income available to common stockholders and their average common equity invested in the company

Rate of Return on Common Stockholders' Equity

28

Capital earned by profitable operation of a corporation that is not distributed to stockholders

Retained Earnings

29

Stock dividend of less than 20%-25% of the issued and outstanding stock

Small Stock Dividend

30

No-par stock that has been assigned an amount similar to par value

Stated Value Stock

31

Paper evidence of ownership in a corporation

Stock Certificate

32

Corporation's equity that includes paid-in capital and retained earnings

Stockholders' Equity

33

Corporation's own stock that is has previously issued and later reacquired

Treasury Stock

34

Firm that handles the issuance of a company's stock to the public, assuming some risk to buy the stock if it cannot be sold

Underwriter