Q1_terms

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bvrider1
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194732
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Q1_terms
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2013-01-23 19:43:58
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ba257
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Ba257 Quiz 1 terms
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  1. Total amount of stock that a corporation's charter authorizes it to issue.
    Authorized stock
  2. Net income less any preferred dividends and then divided by weighted-average common shares outstanding.
    Basic earnings per share
  3. Preferred stock that the issuing corporation, at its option, may retire by paying the call price plus any dividends in arrears.
    Callable preferred stock
  4. Corporation's basic ownership share; also generically called capital stock.
    Common Stock 
  5. Preferred stock with an option to exchange it for common stock at a specified rate.
    Convertible preferred stock
  6. Date the directors vote to pay a dividend.
    Date of Declaration 
  7. Date the corporation makes the dividend payment.
    Date of Payment
  8. Date directors specify for identifying stockholders to receive dividends.
    Date of Record
  9. Unpaid dividend on cumulative preferred stock; must be paid before any regular dividends on preferred stock and before any dividends on common stock
    Dividend in arrears
  10. Stock dividend that is more than 25% of the previously outstanding shares.
    Large stock Dividend
  11. Price at which stock is bought or sold.
    Market Value per Share
  12. Amount of assets defined by law that stockholders must (potentially) invest in a corporation; usually defined as par value of the stock; intended to protect creditors.
    Minimum legal capital 
  13. Stock class that has not been assigned a par (or stated) value by the corporate charter.
    No par value stock
  14. Costs such as legal fees and promoter fees to bring an entity into existence.
    Organization Expenses
  15. Ratio of a company's current market value per share to its earnings per share; also called price-to-earnings.
    Price-Earnings (PE) Ratio
  16. Correction of an error in a prior year that is reported in the statement of retained earnings (or statement of stockholders equity) net of any income tax effects.
    Prior Period Adjustments
  17. Stock dividend that is 25% or less of a corporation's previously outstanding shares.
    Small Stock Dividend
  18. Occurs when a corporation calls in its stock and replaces each share with more than one new share; decreases both the market value per share and any par or stated value per share.
    Stock Split
  19. Corporation's own stock that it reacquired and still holds.
    Treasury Stock
  20. Investments in debt and equity securities that are not classified as trading securities or held-to-maturity securities.
    Available-for-sale Securites
  21. Net change in equity for a period, excluding owner investments and distributions.
    Comprehensive Income
  22. Financial statements that show all (combined) activities under the parent's control, including those of any subsidiaries.
    Consolidated Financial statements
  23. Accounting method used for long-term investments when the investor has significant influence over the inveestee
    Equity Method
  24. Long-term investment when the investor is able to exert controlling influence over the investee; investors owning 50% or more of voting stock are presumed to exert controlling influence.
    Equity securities with controlling influence
  25. Long-term investment when the investor is able to exert significant influence over the investee; investors owning 20 percent or more (but less than 50 percent) of voting stock are presumed to exert significant influence.
    Equity Securities with Significant Influence
  26. Debt securities that a company has the intent and ability to hold until they mature.
    Held-to-Maturity (HTM) securities
  27. Long-term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
    Long-term investments
  28. Equals net income less comprehensive income; includes unrealized gains and losses on available-for-sale securities, foreign currency adjustments, and pension adjustments.
    Other Comprehensive Income
  29. Company that owns a controlling interest in a corporation (requires more than 50% of voting stock).
    Parent
  30. Ratio reflecting operating efficiency; defined as net income divided by average total assets for the period; also called return on assets or return on investment.
    return on total assets
  31. Debt and equity securities that management expects to convert to cash within the next 3 to 12 months (or the operating cycle if longer); also called temporary investments or marketable securities.
    Short-term investments
  32. Entity controlled by another entity (parent) in which the parent owns more than 50% of the subsidiary's voting stock.
    Subsidiary
  33. Investments in debt and equity securities that the company intends to actively trade for profit.
    Trading securities
  34. Gain (loss) not yet realized by an actual transaction or event such as a sale.
    Unrealized gain (loss)

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