acct19.txt

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Anonymous
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149192
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acct19.txt
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2012-04-21 23:16:50
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precious accounting chapter 19
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chapter 19 college accounting
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  1. Articles of Incorporation
    Application for a charter (761)
  2. Authorized Capital
    The maximum number of shares that may be issued for each class of stock (common and preferred) (761)
  3. Capital Stock
    general term referring to shares of ownership in a corporation (761)
  4. Capital Stock Subscription
    Purchase of stock on contract or installment basis (773)
  5. Charter
    Written permit, issued by a state government, for a corporation to exist; state approved articles of incorporation (759)
  6. Closely Held Corporation
    A corporation having a relatively small group of owners (762)
  7. Common Stock
    Stock whose owners are paid dividends only after owners of preferred stock has been paid (residual share); holders of common stock have voting priveleges (766)
  8. Corporation
    " An artificial being, invisible, intagible, and existing only in contemplation of the law." As such, it is a separate legal entity (759)
  9. Cummulative Preferred Stock
    Preferred stock whose holders must be paid accumulated dividends or dividends passed (dividends that the firm has failed to pay in prior years) before any dividends can be paid to holders of common stock (767)
  10. Deficit
    A debit or negative balance in the Retained Earnings Account (776)
  11. Discount
    The amount by which the issuing price of the new stock falls below the par value (770)
  12. Dividends
    Distributions of earnings of a corporation, in the form of either cash or additional shares of stock (763)
  13. Double Taxation
    Taxation of corporate income at two separate points. First, the net income of the corporation is taxed because the corporation is a separate entity. When the net income is distributed as dividends to stockholders, it becomes part of the personal income of the individual stockholder and is taxed a second time (760)
  14. Issued Stock
    Stock issued by a corporation (765)
  15. Legal Capital
    Minimum capital stock investment that a corporation must maintain; capital that is not subject to withdrawal by stockholders; usually equal to par or stated value (772)
  16. Limited Liability Company (LLC)
    An entity that can elect to be treated as partnership for tax purposes and a corporation for legal purposes (limited liability); a very popular form of ownership for closely held and family-owned business (760)
  17. No-Par Value Stock
    Stock that has no value printed on the stock certificates (765)
  18. Noncumulative Preffered Stock
    Preferred stock in which dividends passed do not accumulate; once they are passed, they are gone forever (767)
  19. Nonparticipating Preffered Stock
    Stock in which the dividends are limited to the regular rate (767)
  20. Outsanding Stock
    Stock actually in the possession of stockholders (issued stock less the number of shares reacquired by the company) (765)
  21. Paid-in Capital
    A caption on the balance sheet listed immediately under Stockholders' Equity. The Paid-in Capital section includes the Stock accounts and their related Premium or Discount accounts (771)
  22. Paid-in Capital Stock in Excess of Par Value
    The account name for accounts by which the issuing price of a stock exceeds the par value (770)
  23. Par-value Stock
    Stock for which a uniform face value, indicating he amount per share to be entered in the Capital stock account, is printed on the stock certificates (765)
  24. Participating Preffered Stock
    Preferred stock whose holders share in any extra dividends distributed by the corporation after the regular dividend has been paid to holders of preferred stock and a stipualted dividend has been paid to holders of common stock (767)
  25. Preemitive Right
    A stockholder's right to maintain the same proportionate ownership in a corporation in the future as she or he does originally, through the privilege of subscribing to a new issue of stock in the same proportion as her or his present ownership (763)
  26. Preferred Stock
    Stock whose holders are paid dividends at a uniform rate before any dividends are paid to holders of common stock. The holder of preferred stock also has preferene in the distribution of assets in the event of liquidation (766)
  27. Premium
    The amount by which the issuing price of a stock excceeds the par value (769)
  28. Publicly Traded Corporation
    A corporation having a large group of owners with shares traded on a stock exchange or in over-the-counter markets (762)
  29. Retained Earnings
    A stockholders' equity account representing capital generated by the corporation's earnings that remain in the firm; the amount by which net income exceeds dividends paid over the life of the corporation (765)
  30. S Corporation
    A corporation that elects with the IRS to be treated as a pass-through entity for income tax purposes. There are restrictions on the number (currently there can be no more than 100 shareholders) and type of shareholders an S corporation my have. An S corporation enjoys the absence of double taxation while having limited liability (760)
  31. Stated Value
    The amount per share of no-par value that is recorded in the corporation's stock accounts; an amount designated by law as not subject to withdrawal by stockholders (772)
  32. Stock Certificates
    Documents giving evidence of ownership on shares of stock; issued only when the stockholder has paid for the shares in full (762)
  33. Stockholders' Equity
    The owners' equity in a corporation. also reffered to as capital (764)
  34. Stockholders' Ledger
    A record showing the name and address of each stockholder and the number of shares owned (768)
  35. Surplus
    A credit or positive balance in the Retained Earnings account (776)
  36. Treasury Stock
    A corporation's own stock, which it has issued and which was at one time outstanding, that the firm reacquires (765)

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