Stockholders' Equity (Flashcards)

This type of capital stock is present at every U.S. corporation. It is also the title of the general ledger account that reports the total par value or legal capital of these issued shares.

The total of this section of stockholders’ equity reports the amounts that investors paid when the corporation first issued the shares of stock.

This section of stockholders’ equity (and this general ledger account) generally reports the corporation’s cumulative net income minus the dividends declared since the corporation began.

This description replaces “retained earnings” when the retained earnings is a negative amount.

This class of a corporation’s capital stock receives its dividends ahead of the common stock. Its dividend is usually a fixed, stated amount.

This is the stated legal amount of one share of common stock as required by some states in the U.S. The balance in the account Common Stock will be this amount times the number of shares of common stock that have been issued.

This is a stated legal amount of one share of preferred stock. It is used to compute the dividend on one share of preferred stock.

This is a shortened version of “paid-in capital in excess of par – common stock”.

This account records the amounts received by a corporation that were in excess of the par value of the common shares issued.

This stockholders’ equity account will have a credit balance from selling some of its treasury stock for more than its cost.

This is the amount received by a corporation that exceeded the par value of the preferred shares that were issued.

This is a shortened version of “paid-in capital in excess of par – preferred stock”.

This is a distribution of part of a corporation’s earnings to its stockholders.

This type of dividend involves issuing additional shares of a corporation’s own stock.

This dividend involves a distribution of assets other than cash or a company’s own shares of stock.

This is a corporation’s own shares of stock that have been repurchased and have not been retired.

This refers to a corporation’s stockholders’ equity (minus the book value of any preferred stock) divided by the number of shares of common stock outstanding.

This amount is likely to be the call price of the preferred stock plus any preferred dividends in arrears.

This feature of preferred stock assures the holder that any omitted dividends will be paid before the common stockholders will receive a cash dividend.

This type of preferred stock allows the holder to exchange it for a stated number of shares of the corporation’s common stock.

This separate line within stockholders’ equity reports the cumulative income that has not been reported on the corporation’s income statements. It may involve currency translation, hedging activities, and pension liabilities.

This and a stock dividend are declared by a corporation in order to increase the number of shares of common stock and thereby reduce the market price per share.

These are the omitted dividends on cumulative preferred stock that must be paid before common stockholders can receive a dividend. These must be disclosed in the notes to the financial statements.

This is the number of shares of stock that a corporation can issue according to its articles of incorporation.

This is the number of a corporation’s capital stock that were actually sold, exchanged for services, etc. and have not been retired.

This refers to the shares of a corporation’s capital stock which were issued minus the shares held as treasury stock (if any). This number is used in the calculation of a corporation’s book value and earnings per share.

This term means that an investor of common stock cannot lose more than the amount invested.

This is defined as the total amount of stockholders’ equity which is reported on the balance sheet.

This term refers to the owner of shares of a corporation’s stock.

This category of preferred stock allows the owner to receive a dividend that is greater than the original, stated amount.

This date determines which stockholders will receive a dividend.

This is the date that a corporation’s board of directors approved a dividend and the date that retained earnings is reduced.

This is the day following the record date for a corporation’s next cash dividend.

These obligations are due within one year of the balance sheet date. Cash dividends that have been declared but not yet paid are reported in this section of the balance sheet.

This consists of individuals elected by the common stockholders to oversee a corporation’s policies, declare dividends and elect the corporate officers.

Some states may require this value when the common stock does not have a par value.

This type of claim is often associated with stockholders because the creditors of a corporation have a higher claim on the corporation’s assets.