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37 Cards in this Set
- Front
- Back
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Appropriation of Retained Earnings |
Restriction of a portion of earnings that is recorded by a journal entry |
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Authorized Stock |
The maximum number of shares of stock that company is allowed to issue according to the corporate charter |
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Capital Stock |
represents the individual's ownership of the corporation's capital |
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Common Stock |
Represents the basic ownership of a corporation |
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Corporation |
A business organized under state law as a separate legal entity |
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Cumulative Preferred Stock |
Preferred stock whose owners must receive all dividends in arrears plus the current year dividend before the corporation pays dividends to the common stock holders |
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Deficit |
Debit balance in the Retained Earnings account |
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Discount |
The amount below par at which a stock is issued |
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Dividend |
A distribution of a corporation's earnings to stockholders |
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Dividend in Arrears |
A preferred stock - if the cumulative dividend has not been paid for the year |
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Earnings Per Share (EPS) |
Amount of a company's net income (loss) for each share of its outstanding common stock (net income-preferred dividends) / weighted avg. # of common shares outstanding |
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Issue Price |
The price the stock initially sells for the first time it is sold |
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Issued Stock |
Stock that has been issued but may or may not be held by stockholders |
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Large Stock Dividend |
A stock dividend greater than 20% to 25% of the issued and outstanding stock |
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Legal Capital |
The portion of stockholders equity that cannot be used for dividends |
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Memorandum Entry |
An entry in the journal that notes a significant event but has no debit or credit amount |
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No Par Stock |
Stock that has no amount assigned to it |
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Noncumulative Preferred Stock |
Preferred stock whose owners do no receive passed dividends |
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Outstanding Stock |
Issued stock in the hands of the stockholders |
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Paid-In Capital |
represents amounts received front he stockholders of a corporation in exchange for stock |
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Paid-In Capital in Excess of Par |
represents amounts received from stockholders in excess of par |
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Par Value |
An amount assigned by a company to a share of its stock |
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Preemptive Right |
stockholders right to maintain his or her proportionate ownership in the corporation |
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Preferred Stock |
stock that gives it owners advantages over common stockholders -receive dividends first -first right to assets if the corporation has to liquidate |
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Premium |
the amount above par at which a stock is issued |
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Price/Earnings Ratio |
market price per common share / earnings per share |
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Prior-Period Adjustment |
A correction to retained earnings for an error in an earlier period |
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Rate of Return on Common Stockholder's Equity |
(net income - preferred dividends) / avg. common stockholders equity |
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Retained Earnings |
Capital Earned by profitable operations of a corporation that is not distributed to stockholders |
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Small Stock Dividend |
A stock dividend of less than 20% to 25% of the issued and outstanding stock |
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Stated Value Stock |
non-par stock that has been assigned an amount similar to par value |
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Stock Certificate |
Paper evidence of ownership in a corporation |
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Stock Dividend |
A distribution by a corporation of its own stock to its stockholders |
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Stock Split |
An increase in the number of issued and outstanding shares of stock coupled with a proportionate reduction in the par value of the stock |
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Stockholders' Equity |
a corporations equity that includes paid-in capital and retained earnings |
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Treasury Stock |
A corporation's own stock that it has previously issued and later re-aquired |
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Underwriter |
third party that handles the issuance of a company's stock to the public, and usually assumes some of the risk by agreeing to buy any stock the firm does not sell |
