Accounting Chp 13 & 14

A cash distribution of earnings by a corporation to its shareholders. (578)

The stock outstanding when a corporation has issued only one class of stock. (572)

A debit balance in the retained earnings account. (572)

The interest deducted from the maturity value of a note or the excess of the face amount of bonds over their issue price. (481, 574, 653)

A ratio, computed by dividing the annual dividends paid per share of common stock by the market price per share at a specific date, that indicates the rate of return to stockholders in terms of cash dividend distributions. (587, 760)

The stock in the hands of stock­holders. (572)

Capital contributed to a corporation by the stockholders and others. (571)

The monetary amount printed on a stock certifi­cate. (572)

A class of stock with preferential rights over common stock. (573)

The excess of the issue price of a stock over its par value or the excess of the issue price of bonds over their face amount. (574, 653)

Corrections of material errors related to a prior period or periods, excluded from the determination of net income. (585)

Amounts of retained earnings that have been limited for use as dividends. (584)

Net income retained in a corpora­tion. (571)

A summary of the changes in the retained earnings in a corporation for a specific period of time, such as a month or a year. (584)

A value, similar to par value, approved by the board of directors of a corporation for no-par stock. (572)

A summary of the changes in the stockholders' equity in a corporation that have occurred during a specific period of time. (585)

Shares of ownership of a corporation. (568)

A distribution of shares of stock to its stockholders. (580)

A reduction in the par or stated value of a common stock and the issuance of a proportionate number of additional shares. (586)

The owners of a corporation. (568)

The owners' equity in a corporation. (571)

Stock that a corporation has once issued and then reacquires. (581)

The cumulative effects of other comprehensive income items reported separately in the stockholders' equity section of the balance sheet. (620)

Securities that management expects to sell in the future but which are not actively traded for profit. (622)

A business making an investment in another business by acquiring a controlling share, often greater than 50%, of the outstanding voting stock of another corporation by paying cash or exchanging stock. (627)

All changes in stockholders' equity during a period, except those resulting from dividends and stockholders' investments. (620)

Financial statements resulting from combining parent and subsidiary statements. (627)

Operations of a major line of business or component for a company, such as a division, a department, or a certain class of customer, that have been disposed of. (617)

Net income per share of common stock outstanding during a period. (619)

A method of accounting for an investment in common stock by which the investment account is adjusted for the investor's share of periodic net income and cash dividends of the investee. (625)

The common and preferred stock of a firm. (622)

Events and transactions that (1) are significantly different (unusual) from the typical or the normal operating activities of a business and (2) occur infrequently. (618)

A condition when the fair value of a fixed asset falls below its book value and is not expected to recover. (615)

The balance sheet caption used to report long-term investments in stocks not intended as a source of cash in the normal operations of the business. (625)

Specified items that are reported separately from net income, including foreign currency items, pension liability adjustments, and unrealized gains and losses on investments. (620)

The corporation owning all or a majority of the voting stock of the other corporation. (627)

Differences between taxable and income (before taxes) reported on the income statement that may arise because certain revenues are exempt from tax and certain expenses are not deductible in determining taxable income. (613)

The ratio of the market price per share of common stock, at a specific date, to the annual earnings per share. (759)

The costs associated with involuntarily terminating employees, terminating contracts, consolidating facilities, or relocating employees. (616)

The corporation that is controlled by a parent company. (627)

The income according to the tax laws that is used as a base for determining the amount of taxes owed. (611)

Differences between taxable income and income before income taxes, created because items are recognized in one period for tax purposes and in another period for income statement purposes. Such differences reverse or turn around in later years. (612)

The balances sheet caption used to report investments in income-yielding securities that can be quickly sold and converted to cash as needed. (622)

Securities that management intends to actively trade for profit. (622)

The difference between the fair market value of the securities and their cost. (623)

Cash dividends paid by a corporation are taxable to shareholders.

Paid-in capital and retained earnings.

17,500

stock dividends

dividends per share of common stock/ market price per share of common stock.