Question

Correction to retained earnings for an error made in a previous accounting period Credited when dividends are declared, but will be paid at a later date Basic ownership of corporation Authorized stock 1. Receives dividends before 5 common stock Issued stock 2 Distribution of earnings 6 Outstanding stock 3. Common stock The price at which the stock is bought and sold 4. Preferred stock 5 Amounts received from investors in exchange for stock Dividend 6 The amount of net income or loss for each share of outstanding common stock 7 Preemptive right Increases the number of issued and outstanding shares, and decreases the par value per share Par value 8 Market value 9. Stock that has been issued and later reacquired 10. Paid-in capital stock dividend that has not been paid on cumulative preferred stock 11. Retained eamings Journal entry recording a restriction of a portion of retained earnings to limit the amount of dividends that can be paid Paid-in capital in excess of Par 12. 13. Treasury stock Stock that is held by stockholders 14 Dividends Payable Stockholder has a right to maintain share of ownership in corporation Dividends in arrears 15 > st un

Answer 1

1. Authorized stock - Maximum number of shares of stock that can be issued.

2. Issued stock - Distribution of corpoations own stock

3. Outstanding stock - Shares of stock that have been transferred to stockholders that may or may not be held by the stockholders.

4. Common stock - Basic ownership of Corporation

5. Preferred stock - Receives dividends before common stock

6. Dividend - Distribution of earnings

7.Preemptive rights - stockholders has a right to maintain share of ownership in Corporation.

8. Par value - Amount assigned by company to share of stock

9. Market value - The price at which the stock is bought and sold

10. Paid in capital - Amount received from investors in exchange for stock

11. Retained earnings - Equity earned that is not distributed to stockholders

12. Paid in capital in excess of par - Difference between amount received for stock and par value

13. Treasury stock - Stocks that have been issued and later reacquired.

14. Dividends payable - Credited when dividends are declared but will be paid at a later date.

15. Dividends in arrear - Stock dividend that has not been paid on cumulative preferred stock.

16. Stock dividend - Stock that is held by shareholders.

17.stock split - Increases the number of issued and outstanding shares and decreases the par value per share.

18. Earnings per share - The amount of net income or loss for each share of outstanding common stock.

19. Appropriation of retained earnings - Journal entry recording a restriction of a portion of retained earnings to limit the amount of dividends that can be paid.

20. Prior period adjustment - Correction to retained earnings for an error made in a previous accounting perod.