Adv. Accounting Chapter 9 Vocabulary

Stock Certificate

A(n) _____ is a document that shows how many shares of a corporations stock are owned.

Corporation

A(n) _____ is an artificial legal entity that has rights and responsibilities of its own.

Preferred Stock

Owners of _____ are paid dividends before owners of common stock.

Stock Subscription

Selling stock on the installment basis is called _____.

Issued Shares

Shares that have been sold by a corporation are called _____.

Par-value stock

Stock that has a specific value printed on a stock certificate is _____.

Outstanding Stock

Stock that is actually in the hands of stockholders is called _____.

Board of Directors

The _____ govern and are responsible for the affairs of the corporation.

Pre-emptive right

The ability of common stockholders to purchase additional shares in proportion to their present holdings is known as the _____.

Articles of Incorporation

The application to organize a corporation submitted to the state in which the company is to be incorporated is called the _____.

Charter

The approved articles of incorporation become the corporation's _____.

Authorized Capital Stock

The maximum number of shares a corporation is allowed to issue is _____.

Stockholders

The owners of a corporation are called _____.

Stock

The shares of ownership in a corporation are refereed to as _____.

Stockholders' Ledger

The subsidiary ledger showing the name and address of each stockholder and shares owned is called _____.

Stated Value

The value assigned to no-par stock by the board of directors is called its _____.

Common Stock

When a corporation issues only one type of stock, it is called _____.

No-par Stock

_____ does not have a dollar value printed on the stock certificate.

Legal Capital

_____ is the minimum amount of the capital contribution by stockholders that a corporation must retain in the business to protect creditors.

Double Taxation

_____ refers to the fact that the corporation pays income taxes on its earnings and stockholders pay personal income taxes on the dividends received.