Ch 21 - Corp Earnings and Capital Trans Flashcards
appropriation of retained earnings
formal declaration of intention to restrict dividends
book value (stock)
total equity available to a class of stock divided by the number of share outstanding
common Stock Dividend Distributable account
equity account used to record par, or stated, value of shares to be issues as the result of the declaration of a stock dividend
declaration date
date on which the board of directors declares a dividend
deferred income taxes
amount of taxes that will be payable in the future as a result of difference between taxable income and income for financial statement purposes in the current year and in past years
donated capital
capital resulting from the receipt of gifts by a corp
Extraordinary, Nonrecurring Items
transactions that are highly unusual, clearly unrelated to routine operations, and that do not frequently occur
paid-in capital
Capital acquired from capital stock transactions (also known as contributed capital)
payment date
date that dividends are paid
record date
date on which the specific stockholders to received a dividend are determined
retained earnings
cumulative profits and losses of corp not distributed as dividends
statement of retained earnings
financial statement that shows all changes that have occurred in retained earnings during the period
statement of stockholders’ equity
financial statement that provides an analysis reconciling the beginning and ending balance of each of the stockholders’ equity accounts
stock dividend
distribution of the corp’s own stock on a pro rata basis that results in conversion of a portion of firms retained earnings to permanent capital
stock split
when a corp issues two or more shares of new stock to replace each share outstanding without making any changes in the capital accounts
stockholders of record
stockholders in whose name stock is held on date of record and who will receive a declared dividend
treasury stock
corp’s own capital stock that has been issued and reacquired;
stock must have been been previously paid in full and issued to a stockholder
