T4-3

Question 1

contributed capital

Answer 1

a. Includes capital stock issued
b. A corporation records the results of all its stock transactions in capital stock accounts and additional paid-in capital accounts

Question 2

par value

Answer 2

a. a designated dollar amount per share that is established in the articles of incorporation and is printed on each stock certificate

Question 3

shares authorized

Answer 3

a. the number of shares of capital stock both preferred and common that a corporation may issue as stated in its corporate charter

Question 4

shares issued

Answer 4

a. the number of shares of capital stock that a corprotion has issued to its shareholders as of a specific date

Question 5

shares outstanding

Answer 5

a. is the number of shares that a corporation has issued to shareholders and that are still being held by shareholders as of a specific date

Question 6

preferred stock

Answer 6

a. the number of shares that a corporation has issued to shareholders and that are still being held by shareholders as of a specific date
b. usually has NO voting rights
c. usually has a fixed dividend rate

Question 7

common stock

Answer 7

a. basic voting stock
b. ranks after preferred stock
c. dividend set by board of directors