Chp 20 Stockholders Equity

Question 1

_____ _____ Costs represent expenditures for registration, underwriting, attorney and accountant involvement, printing, administration, and promotion.

Answer 1

Stock Issue

Question 2

Stock issued but later repurchased and held by a corporation.

Answer 2

Treasury

Question 3

Amount of stock that can be legally issued.

Answer 3

Authorized

Question 4

First day shares are traded without the right to receive declared dividends.

Answer 4

Exdividend

Question 5

A right to preferred stock dividends that add up each year if not paid.

Answer 5

Cumulative

Question 6

A distribution of retained earnings to shareholders.

Answer 6

Dividend

Question 7

_____ interest represents net assets owned by investors who are not part of the controlling interest.

Answer 7

Non-controlling

Question 8

A term for a stock that has been acquired and no longer issued and outstanding.

Answer 8

Retirement

Question 9

Income that represents changes in equity of a business during a period from transactions and other circumstances by nonowner sources.

Answer 9

Comprehensive

Question 10

A change in the number of shares outstanding and offsetting change in par or stated value per share.

Answer 10

Stocksplit

Question 11

A type of dividend that is noncash assets.

Answer 11

Property

Question 12

A type of dividend that is a return of stockholders’ investment rather than a distribution of profits.

Answer 12

Liquidating

Question 13

Primary issue of shares and are the residual owners of a corporation.

Answer 13

Common

Question 14

Gives each stockholder the opportunity to maintain a proportional ownership in a corporation.

Answer 14

Preemptive

Question 15

Value assigned to no-par stock.

Answer 15

Stated

Question 16

A type of stock split that results in an increase in market price per share.

Answer 16

Reverse

Question 17

Restricted retained earnings placed in a separate account and identified in financial statements.

Answer 17

Appropriative

Question 18

Accumulated net income or net loss from a company’s inception.

Answer 18

Retained Earnings

Question 19

Articles of _____ is a document prepared by a corporation that describes its nature and purpose and type and number of stock authorized.

Answer 19

Incorporation

Question 20

Retained earnings allocated by a corporation for a certain purpose.

Answer 20

Restricted

Question 21

Stock value per share based upon articles of incorporation.

Answer 21

Par Value

Question 22

A type of dividend that grants new shares of stock to shareholders without any consideration from them.

Answer 22

Stock

Question 23

_____ Business Corporation Act guides states in the development of their corporation statues.

Answer 23

Model

Question 24

Abbreviation for comprehensive income acquired over current and prior periods.

Answer 24

A.O.C.I.

Question 25

Number of stock that has been released by a corporation.

Answer 25

Issued

Question 26

Allows preferred stockholders to share in additional dividends on pro rata basis with common stockholders.

Answer 26

Participating

Question 27

Date of _____ is when a corporation approves and announces a dividend payment.

Answer 27

Declaration

Question 28

Shares with certain preferences or rights, including priority claim on dividends.

Answer 28

Preferred

Question 29

Stock issued less those in the corporation’s treasury.

Answer 29

Outstanding