Match the items below by entering the appropriate code letter in the space provided.

1. Net income retained in the corporation.

2. The amount that must be retained in the business for the protection of creditors.

3. Preferred stockholders have a right to receive current and unpaid prior-year dividends before common stockholders receive any dividends.

4. Creditors only have corporate assets to satisfy their claims.

5. Responsible to stockholders for corporate activity.

6. The amount assigned to each share of stock in the corporate charter.

7. Unit of ownership in a corporation.

8. Enables stockholders to maintain their same percentage ownership when new shares are issued.

9. Corporations own stock that has been reacquired by the corporation but not retired.

10. Total amount paid-in on capital stock.

11. A dividend declared out of paid-in capital.

12. A pro rata distribution of cash to stockholders.

13. A debit balance in retained earnings.

14. A pro rata distribution of the corporations own stock to stockholders.

15. Shows how many dollars of net income were earned for each dollar invested by the owners.

16. The date the board of directors formally declares the dividend and announces it to stockholders.

17. The issuance of additional shares of stock to stockholders accompanied by a reduction in the par or stated value per share.

18. Widely used by stockholders and potential investors in evaluating the profitability of a company.

Answers:

Cash dividend

Earnings per share

Par value

Board of directors

Liquidating dividend

Return on common stockholder's equity

Legal capital

Cumulative feature

Limited liability

Paid-in capital

Preemptive right

Retained earnings

treasury stock

deficit

declaration date

stock dividend

stock split

capital stock