A list of terms and a list of definitions or examples are presented below. Make a list

Question:

A list of terms and a list of definitions or examples are presented below. Make a list of the numbers 1 through 12 and match the letter of the most directly related definition or example with each number.
Terms
1. Stock warrant
2. Date of record
3. Par value
4.
Stock split
5. Treasury stock
6. Stock dividend
7.
Preferred stock
8. Outstanding shares
9. Authorized shares
10. Declaration date
11. Comprehensive income
12. Retained earnings
Definitions and Examples
a. Capitalizes retained earnings.
b. Shares issued minus treasury shares.
c. Emerson Electric will pay a dividend to all persons holding shares of its common stock on December 15, 2011, even if they just bought the shares and sell them a few days later.
d. The accumulated earnings over the entire life of the corporation that have not been paid out in dividends.
e. Common stock account balance divided by the number of shares issued.
f. The state of Louisiana set an upper limit of 1,000,000 on the number of shares that Gump’s Catch, Inc., can issue.
g. Shares that never earn dividends.
h. Any changes to stockholders’ equity from transactions with nonowners.
i. A right to purchase stock at a specified future time and specified price.
j. A stock issue that requires no journal entry.
k. Shares that may earn guaranteed dividends.
l. On October 15, 2011, General Electric announced its intention to pay a dividend on common stock.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Cornerstones of Financial and Managerial Accounting

ISBN: 978-1111879044

2nd edition

Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen

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