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Accounting Ch.13

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Preferred stock
Stock with a priority status over common stockholders
in one or more ways, such as paying dividends or distributing
assets.
Retained earnings
Cumulative income less cumulative losses and dividends.
Small stock dividend
Stock dividend that is 25% or less of a corporation's
previously outstanding shares.
Stated value stock
No-par stock assigned a stated value per share; this
amount is recorded in the stock account when the stock is issued
Stock dividend
Corporation's distribution of its own stock to its stockholders
without the receipt of any payment
Stock split
Occurs when a corporation calls in its stock and replaces
each share with more than one new share; decreases both the market
value per share and any par or stated value per share
Treasury stock
Corporation's own stock that it reacquired and still
holds
Stockholders' equity
A corporation's equity; also called shareholders'
equity or corporate capital
Authorized stock
Total amount of stock that a corporation's charter authorizes
it to issue
Capital stock
General term referring to a corporation's stock used in
obtaining capital (owner financing).
Common stock
Corporation's basic ownership share; also generically
called capital stock
Corporation
Business that is a separate legal entity under state or
federal laws with owners called shareholders or stockholders.
Cumulative preferred stock
Preferred stock on which undeclared dividends
accumulate until paid; common stockholders cannot receive dividends
until cumulative dividends are paid.
Date of declaration
Date the directors vote to pay a dividend
Date of payment
Date the corporation makes the dividend payment
Date of record
Date directors specify for identifying stockholders to
receive dividends.
Dividend in arrears
Unpaid dividend on cumulative preferred stock;
must be paid before any regular dividends on preferred stock and before
any dividends on common stock.
Large stock dividend
Stock dividend that is more than 25% of the previously
outstanding shares
Organization expenses (costs)
Costs such as legal fees and promoter
fees to bring an entity into existence.
paid-in capital
Total amount of cash and other assets received from
stockholders in exchange for stock
Paid-in capital in excess of par value
Amount received from issuance
of stock that is in excess of the stock's par values
Par value
Value assigned a share of stock by the corporate charter when
the stock is authorized
Par value stock
Class of stock assigned a par value by the corporate
charter