Match Each Definition with the Correct Term Below

Multiple Choice

Match each definition with the correct term below.
-Authorized shares

A) The maximum number of shares of stock that a corporation's state charter allows it to issue.
B) A distribution among stockholders of the assets that a corporation's earnings have generated.
C) A summary of the changes in the components of the stockholders' equity section of the balance sheet.
D) A proportional distribution of shares among a corporation's shareholders.
E) Stock that does not have a par value.
F) Represents a company's total assets minus its liabilities.
G) No-par stock that has a value assigned to it either by the board of directors or the state.
H) A dividend declared by a company that is in excess of its retained earnings.
I) The shares of stock that a corporation sells or otherwise transfers to stockholders.
J) When a corporation increases the number of shares of stock issued and outstanding and reduces the par or stated value proportionally.