Chapter 18 Flashcards Preview

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Flashcards in Chapter 18 Deck (25)
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1
Q

shareholder’s equity Equation

A

Asset-Liabilities

2
Q

Sources of Shareholder’s Equity

A

Paid in Capital
Retained Earnings
Treasury Stick
AOCI

3
Q

Paid-in-Capital

A

Invested by shareholders, purchase of stock, share based compensation

4
Q

Treasury Stock

A

Stock that has been bought back by the company

5
Q

Accumulated Other Comprehensive Income

A

Net holding Gains/loses on investment
Gains from amendments to postretirement
Deferred Gains on derivatives
Adjustment from foreign currency translation

6
Q

Statement of Comprehensive Income

A

Two components:
Current (over reporting period)
Accumulated

7
Q

Common Stock

A

Right to vote. Right to dividends right to share in the distribution of assets

8
Q

Preemptive Right

A

Maintain one’s % share of ownership when new shares are issues.

9
Q

Preferred Shares

A

Can either recieve dividend first and or have a preference to distribution of assets in event of dissolved

10
Q

Right of Conversion

A

Can converse preferred to common

11
Q

Participating

A

Allow preferred shareholders to receive additional dividends beyond the stated amount

12
Q

What does PS to equity and debt

A

Increase Equity but does not effect Debt

13
Q

Mandatorily Redeemable PS

A

Must be reported as a liability

14
Q

Par Value

A

“Real” Value of shares. Amount not available for D/E6

15
Q

Outstanding Shares

A

Available in stock exchanges to buy

16
Q

Issued Stock

A

Still in treasury waiting to become outstanding

17
Q

Share repurchases

A

No gains or lose, more of a transactions

18
Q

PIC-Repurchase

A

Plug in between PIC_Excess/CS/Cash

19
Q

Treasury Stock

A

Contra (Debit Balance)

20
Q

Retirement

A

Record cash, remove sotck, par, add PIC SR Plug to RE

21
Q

Debit Balance RE

A

Deficit

22
Q

Declaring D/E

A

Reduce RE and record liabilities

23
Q

Date of Record

A

Specific date when divdend can be declared

24
Q

Small Stock D?E

A

Taken from R/E and credited PIC EoP

25
Q

Stock Split

A

Induce the pe share market price decline