Chap 21 Flashcards
Appropriation of Retained Earnings
a formal declaration of an intention to restrict dividends
Book Value (stock)
the total equity applicable to a class of stock divided by the number of shares outstanding (in circulation)
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
the date on which the board of directors declares a dividend.
Deferred income taxes
the amount of income taxes that will be payable or an amount that may benefit the corporation in the future as a result of the difference between the current year’s taxable income and financial statement net income
Donated Capital
capital resulting from the receipt of gifts by a corporation
Paid-in Capital
capital acquired from capital stock transactions (also know as contributed capital)
Payment Date
the date that dividends are paid
Record Date
the date on which the specific stockholders are to receive a dividend are determined
Retained Earnings
the cumulative profits and losses of the corporation not distributed as dividends
Statement of Retained Earnings
a financial statement that provides an analysis reconciling the beginning and ending balance of each of the stockholders’ equity accounts
Statement of Stockholders Equity
a financial statement that provides an analysis reconciling the beginning and ending balance of each of the stockholders’ equity accounts
Stock Dividend
distribution of the corporation’s own stock on a pro rata basis that results in conversion of a portion of the firm’s retained earnings to permanent capital
Stock Split
when a corporation 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 shares are held on date of record and who will receive a declared dividend
