Common Owners Equity

Question 1

is a security that has preferences as to dividends at a stated rate and priorities as to assets at time of liquidations not found in common stock.

Answer 1

Preferred Stock

Question 2

The par value or stated value of the common stock (basic ownership interest in the corporation).

Answer 2

Common Stock

Question 3

The difference between the amount received by a company from the issuance of common stock and the amount from the issuance assigned to the common stock account. This account is also referred to as Paid-in Capital in Excess of Par or Capital Surplus.

Answer 3

Additional Paid-In Capital

Question 4

The cost of acquisitions by a company of its own common stock. This account is a contra equity account thus having a negative effect on the owners’ equity balance.

Answer 4

Treasury Stock

Question 5

The cumulative net income of a company since inception less dividends paid to shareholders. This account is often referred to as “accumulated losses” when the aggregate earnings of the company are negative.

Answer 5

Retained Earnings

Question 6

Changes in owners’ equity of a company during an accounting period from transactions and other events and circumstances from non-owner sources, such as gains and losses arising from translating foreign subsidiary financial statements expressed in local currency into U.S. dollars.

Answer 6

Accumulated Other Comprehensive Income or Loss