Chapter 12

Question 1

Corporation

Answer 1

A legal entity

Distinct and separate from the owners/ operators

Question 2

Paid in Capital

Answer 2

Investment by owner

Common stock
Preferred stock

Question 3

Outstanding Stock

Answer 3

Shares in the hands on stockholders not the corperation

Question 4

Common Stock

Answer 4

One class of stock issued

Question 5

Preferred Stock

Answer 5

Dividen rights above and recibe before common stockholders.

1st right of recivabke

Question 6

Cumulative Preferred Stock

Answer 6

Right to receive dividends not paid in prior years

Dividends in the rear’s

Question 7

Stocks sold above par

Answer 7

Is sold at a premium

Goes in an account called
“Paid-in Capital in Excess of Par”

Question 8

Corporations have less regulatory cost than other businesses
T/ F

Answer 8

True

Question 9

Number of shares of stock that a corporation can issue stated in its charter is called

Answer 9

Authorized

Question 10

When no-Par Stock is issued

Answer 10

Common stock is credited for the fun amount of proceeds

Question 11

Cash dividends are paid on ________ stock?

Answer 11

Outstanding

Question 12

Cash dividends are paid on ________ stock?

Answer 12

Outstanding

Question 13

Which cash dividends are paid is the

Answer 13

Date of payment

Question 14

An objective to stock splits is?

Answer 14

To reduce the market price per of the stock

Question 15

EPS

Answer 15

Earnings per share