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Match Each of the Following Terms with the Appropriate Definitions

Question 112

Matching

Match each of the following terms with the appropriate definitions.

Premises:

Responses:

Statement of changes in stockholders' equity

A part of operations that serves a particular line of business or class of customers and that has assets, activities and operating results distinguished from other parts

Earnings per share

A abnormal debit balance in retained earnings

Treasury stock

The right to purchase common stock at a fixed price over a specified period

Date of declaration

A corporation's own stock that was reacquired and is still held by the corporation

Cash dividend

Income earned by each share of a company's outstanding common stock

Prior period adjustment

A correction of an error in a prior year that is reported in the statement of retained earnings or changes in stockholders' equity net of any income tax effects

Stock option

A distribution of cash to the owners of a corporation

Deficit

A financial statement that lists the beginning and ending balances of each equity account and describes the changes in these accounts during the period

Large stock dividend

A stock dividend that is more than 25% of the previously outstanding shares

Business segment

The date a corporation's directors vote to issue a dividend

Premises:

Statement of changes in stockholders' equity

Earnings per share

Treasury stock

Date of declaration

Cash dividend

Prior period adjustment

Stock option

Deficit

Large stock dividend

Business segment

Responses:

A part of operations that serves a particular line of business or class of customers and that has assets, activities and operating results distinguished from other parts

A abnormal debit balance in retained earnings

The right to purchase common stock at a fixed price over a specified period

A corporation's own stock that was reacquired and is still held by the corporation

Income earned by each share of a company's outstanding common stock

A correction of an error in a prior year that is reported in the statement of retained earnings or changes in stockholders' equity net of any income tax effects

A distribution of cash to the owners of a corporation

A financial statement that lists the beginning and ending balances of each equity account and describes the changes in these accounts during the period

A stock dividend that is more than 25% of the previously outstanding shares

The date a corporation's directors vote to issue a dividend

Correct Answer:

Premises:

Responses:

Statement of changes in stockholders' equity

Earnings per share

Treasury stock

Date of declaration

Cash dividend

Prior period adjustment

Stock option

Deficit

Large stock dividend

Business segment