corporations test1 Flashcards
1
Q
double taxation
A
- corporation profits are taxed
- shareholders are taxed (DIVIDENDS)
2
Q
accounting equation for corporations
A
A= L+ Stock holder’s Equity
3
Q
stock holder’s equity consists of
A
- Paid in capital/ contributed capital (capital raised by selling shares)
-CS, PS, Pd in cap in excess of par- CS & Pd in cap in excess of par- PS - retain earnings- profit not paid to shareholders.
4
Q
value assigned to each stock
maximum amount of shares the corp. is allowed to sell
sold
shares that r sold but still in hands of the shareholders.
when the Corp. buy back the shares from the shareholders.
A
Par value
Authorized
issued
outstanding
treasury stock
5
Q
Date of Declaration for CASH
A
Cash dividends-Dr
Cash dividends payable-Cr
6
Q
date of record for CASH
A
NO ENTRY
7
Q
Date of Payment for CASH
A
Cash dividends payable
cash
8
Q
Date of Declaration for STOCK
A
Stock dividends
Stock dividends distributable
pd in cap. in excess of par-cs
9
Q
date of record for STOCK
A
NO ENTRY
10
Q
Date of Payment for STOCK
A
stock dividends distributable
common stock
