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56 Cards in this Set

  • Front
  • Back
Corporation
Has separate legal existence distinct from its owners.
What are the major advantages of the corporate form of an organization?
liability, life, ownership rights
Who is the chief executive officer with direct responsibility for managing the business?
The President
Who do publicly held corporations disclose their financial affairs to?
Securities and Exchanges Commision
What do stockholders share upon liquidation
corporate earnings, assets
What does the par value of stock represent? And what is retained for protection of the corporate __________?
legal capital, creditors
A corporation's own stock that has been reacquired by the corporation and held for future use is called __________ and is deducted from total ______________ on the balance sheet?
treasury stock, paid-in capital and retained earnings
The __________________ feature of preferred stock gives the preferred stockholders the right to receive current-year dividends and unpaid prior-year dividends before common stockholders receive any dividends.
commulative
The important dates associated with dividends are the
declaration date, record date, payment date
The entry to record the declaration of a stock dividend increases _____________ and decreases _______________
increase, no effect
A debit balance in retained earnings is identified as a ___________.
deficit
The paid-in capital section of the balance sheets consists of two classifications: ________________ & ____________________________
capital stock, additional paid-in capital
The date the board of directors formally declares a dividends
Declaration date
The amount that must be retained in the business for the protection of creditors
Legal Capital
Preferred stockholders have a right to receive current and unpaid prior-year dividends before common stockholders receive any dividends.
Cumulative feature
The chief accounting officer.
Controller
Measures the percentage of earnings distributed in the form of dividends to common stockholders.
Payout ratio
The amount assigned to each share of stock in the corporate charter.
Par value
A debit balance in retained earnings.
Deficit
Enables stockholders to maintain their same percentage ownership when new shares are issued.
Preemptive right
Corporation's own stock that has been reacquired by the corporation but not retired.
Treasury stock
A pro rata distribution of the corporation's own stock to stockholders.
Stock dividend
Simple to establish
sole proprietorship, partnership
Shared control
partnership
easy to transfer ownership
corporation
no personal liability
corporation
tax advantage
sole proprietorship, partnership
easier to raise funds
corporation
rent expense
stockholders' equity
equipment
asset
accounts payable
liability
common stock
stockholders equity
insurance expense
stockholders equity
cash
asset
accounts receivable
asset
retained earnings
stockholders equity
service revenue
stockholders equity
notes payable
liability
A business organized as a separate legal entity owned by stockholder is a ____________________________
corporation
_____________________ of accounting information are managers who plan, organize, and run a business.
internal users
__________________ activities involve collecting the necessary funds to start the business.
financing
The _______________ reports the assets, liabilities, and the stockholders' equity of a business at a specific date.
balance sheet
The claims of owners on the assets of a corporation are known as ________________
stockholders' equity
The basic accounting equation Assets = __________ + _________
liabilities, stockholders' equity
The primary purpose of a ___________________ is to provide financial information about the cash receipts and cash payments of a business
statement of cash flows
The _________________ is prepared by an independent auditor stating the auditor's opinion as to the fairness of the presentation of the financial statements
auditors report
Distributions of cash from a corporation to its stock holders.
dividends
Consumed assets or services
expenses
Ownership is limited to one person.
sole proprietorship
Officers and others who manage the business
internal users
creditors who claim against the assets of the business
liabilities
A separate legal entity under state laws.
Corporation
A report prepared by management that presents financial information
annual report
a section of the annual report that presents management's views
management discussion and analysis
future economic benefits
investing activites
involves acquiring the resources necessary to run the business
assets