Chapter 11 Vocabulary Flashcards
cash dividend
A cash distribution of earnings by a corporation to its shareholders.
account form
The stock outstanding when a corporation has issued only one class of stock.
cumulative preferred stock
Stock that has a right to receive regular dividends that were not declared (paid) in prior years.
discount
The interest deducted from the maturity value of a note or the excess of the face amount of bonds over their issue price.
earnings per common share (EPS)
Net income per share of common stock outstanding during a period.
in arrears
Cumulative preferred stock dividends that have not been paid in prior years are said to be in arrears.
outstanding stock
The stock in the hands of stockholders.
par value
A dollar amount assigned to each share of stock.
preferred stock
A class of stock with preferential rights over common stock.
premium
The excess of the issue price of a stock over its par value or the excess of the issue price of bonds over their face amount.
prior period adjustment
The combination of direct materials and direct labor costs.
restrictions
Amounts of retained earnings that have been limited for use as dividends.
retained earnings statement
A summary of the changes in the retained earnings in a corporation for a specific period of time; such as a month or a year.
statement of stockholders’ equity
A summary of the changes in the stockholders’ equity in a corporation that have occurred during a specific period of time.
stock
Shares of ownership of a corporation.
