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Match the Items Below

Question 45

Matching

Match the items below

Premises:
Net income retained in the corporation.
The amount that must be retained in the business for the protection of creditors.
Preferred stockholders have a right to receive current and unpaid prior-year dividends before common stockholders receive any dividends.
Creditors only have corporate assets to satisfy their claims.
Responsible to stockholders for corporate activity.
The amount assigned to each share of stock in the corporate charter.
Unit of ownership in a corporation.
Enables stockholders to maintain their same percentage ownership when new shares are issued.
Corporation’s own stock that has been reacquired by the corporation but not retired.
Total amount paid-in on capital stock.
A dividend declared out of paid-in capital.
A pro rata distribution of cash to stockholders.
A debit balance in retained earnings.
A pro rata distribution of the corporation’s own stock to stockholders.
Shows how many dollars of net income were earned for each dollar invested by the owners.
The date the board of directors formally declares the dividend and announces it to stockholders.
The issuance of additional shares of stock to stockholders accompanied by a reduction in the par or stated value per share.
Widely used by stockholders and potential investors in evaluating the profitability of a company.
Responses:
Limited liability
Capital stock
Board of directors
Paid-in capital
Retained earnings
Preemptive right
Par value
Legal capital
Treasury stock
Cumulative feature
Deficit
Liquidating dividend
Earnings per share
Return on common stockholders’ equity
Cash dividend
Declaration date
Stock dividend
Stock split

Correct Answer:

Net income retained in the corporation.
The amount that must be retained in the business for the protection of creditors.
Preferred stockholders have a right to receive current and unpaid prior-year dividends before common stockholders receive any dividends.
Creditors only have corporate assets to satisfy their claims.
Responsible to stockholders for corporate activity.
The amount assigned to each share of stock in the corporate charter.
Unit of ownership in a corporation.
Enables stockholders to maintain their same percentage ownership when new shares are issued.
Corporation’s own stock that has been reacquired by the corporation but not retired.
Total amount paid-in on capital stock.
A dividend declared out of paid-in capital.
A pro rata distribution of cash to stockholders.
A debit balance in retained earnings.
A pro rata distribution of the corporation’s own stock to stockholders.
Shows how many dollars of net income were earned for each dollar invested by the owners.
The date the board of directors formally declares the dividend and announces it to stockholders.
The issuance of additional shares of stock to stockholders accompanied by a reduction in the par or stated value per share.
Widely used by stockholders and potential investors in evaluating the profitability of a company.
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