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