10 11 vocab words

Question 1

Paid in capital

Answer 1

total amount stockholders invested in the cooperation, including common stock, preferred, stock, and additional paid in capital

Question 2

earned capital

Answer 2

Amount of earnings the cooperation has retained

Question 3

Treasury stock (contra equity account)-

Answer 3

corporation stock that is required

Question 4

common stock account

Answer 4

basic form of stock issued by corporation

Question 5

Par value of stock

Answer 5

arbitrary amount assigned to share of stock in the articles of incorporation

Question 6

retained earnings account

Answer 6

represents the earnings retained in the cooperation- earrning not paid out as dividends to stock holders

Question 7

dividends account

Answer 7

Distribution to the shareholders of a cooperation usually based on earnings

Question 8

Indirected cash flow method

Answer 8

Begin with net income and then list the adjustment to net income, in order to arrive at operating cash flows

Question 9

operating activities-

Answer 9

Include cash receipts and cash payments for transactions relating to revenue and expense activities

Question 10

Financing activities

Answer 10

Inflows and outflows of cash resulting from the external financing of a business (long term debt and stock holders equity)