ACC 201 ch 10

Card Set Information

Author:
gabo
ID:
154238
Filename:
ACC 201 ch 10
Updated:
2012-05-16 15:27:46
Tags:
Stockholders Equit
Folders:

Description:
Glossary
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user gabo on FreezingBlue Flashcards. What would you like to do?


  1. Accumulated deficit p. 472
    A debit balance in Retained Earnings.
  2. Additional paid-in capital p. 458
    The portion of the cash proceeds above par value.
  3. Angel investors . p. 460
    Wealthy individuals in the business community willing to risk investment funds on a promising business venture
  4. Articles of incorporation p. 459
    Describes the nature of the firm's business activities, the shares to be issued, and the composition of the initial board of directors.
  5. Authorized stock . p. 464
    The total number of shares available to sell, stated in the company's articles of incorporation
  6. Convertible p. 467
    Shares can be exchanged for common stock.
  7. Cumulative p. 467
    Shares receive priority for future dividends, if dividends are not paid in a given year.
  8. Declaration date . p. 473
    The day on which the board of directors declares the cash dividend to be paid
  9. Dividends p. 472
    Distributions by a corporation to its stockholders.
  10. Dividends in arrears p. 467
    Unpaid dividends on cumulative preferred stock.
  11. Double taxation p. 462
    A corporation pays income taxes on its earnings, and when dividends aredistributed to stockholders, the stockholders pay taxes a second time on the corporate dividends they receive.
  12. Earnings per share p. 485
    Measures the net income earned per share of common stock.
  13. Growth stocks p. 486
    Stocks that tend to have higher price-earnings ratios and are expected to have higher future earnings.
  14. Initial public offering p. 460
    The first time a corporation issues stock to the public.
  15. Issued stock p. 464
    The number of shares sold to investors; includes treasury shares.
  16. Limited liability p. 462
    Stockholders in a corporation can lose no more than the amount they invested in the company.
  17. Model Business Corporation Act . p. 459
    Serves as a guide to states in the development of their corporate statutes
  18. Mutual agency p. 462
    Individual partners each have power to bind the partnership to a contract.
  19. No-par value stock p. 465
    Common stock that has not been assigned a par value.
  20. Organization chart p. 459
    Traces the line of authority for a typical corporation.
  21. Outstanding stock p. 464
    The number of shares held by investors; excludes treasury shares.
  22. Paid-in capital p. 458
    The amount stockholders have invested in the company.
  23. Par value p. 465
    The legal capital assigned per share of stock.
  24. Payment date p. 473
    The date of the actual cash distribution of dividends.
  25. Preferred stock p. 466
    Stock with preference over common stock in the payment of dividends and the distribution of assets.
  26. Price-earnings ratio p. 486
    The stock price divided by earnings per share so that both stock price and earnings are expressed on a per share basis.
  27. Privately held corporation p. 461
    Does not allow investment by the general public and normally has fewer stockholders.
  28. Publicly held corporation p. 460
    Allows investment by the general public and is regulated by the Securities and Exchange Commission.
  29. Record date p. 473
    A specific date on which the company will determine the registered owners of stock and, therefore, who will receive the dividend.
  30. Redeemable p. 467
    Shares can be returned to the corporation at a fixed price.
  31. Retained earnings pp. 458, 472
    Represents all net income, less all dividends, since the company began.
  32. Return on equity p. 483
    Net income divided by average stockholders' equity; measures the income generated per dollar of equity.
  33. Return on the market value of equity p. 484
    Net income divided by the market value of equity.
  34. S corporation. p. 463
    Allows a company to enjoy limited liability as a corporation, but tax treatment as a partnership
  35. Stated value p. 465
    The legal capital assigned per share to no-par stock.
  36. Statement of stockholders' equity . p. 480
    Summarizes the changes in the balance in each stockholders' equity account over a period of time
  37. Stock dividends p. 476
    Additional shares of a company's own stock given to stockholders.
  38. Stock split p. 476
    A large stock dividend that includes a reduction in the par or stated value per share.
  39. Treasury stock p. 458
    A corporation's own stock that it has reacquired.
  40. Value stocks p. 486
    Stocks that tend to have lower price-earnings ratios and are priced low in relation to current earnings.
  41. Venture capital firms p. 460
    Provide additional financing, often in the millions, for a percentage ownership in the company.

What would you like to do?

Home > Flashcards > Print Preview