Accounting CH14 Fill in the Blanks

The number of shares that a corporation is permitted to issue is termed the ____________ shares, whereas the number of shares actually issued and held by stockholders is termed ____________ shares.

(authorized) (outstanding)

The feature that allows a corporation to reacquire stock, at the corporation's option, is commonly known as the ____________ feature; the feature that allows the shareholder to exchange preferred shares for common shares is called the ____________ feature.

(call) (conversion)

A corporation is created by obtaining a ____________ from one of the states.

(charter)

A ____________ is a corporation which has shares of stock owned by relatively few persons.

(closely held)

A ____________ is an artificial being, existing only in contemplation of law.

(corporation)

For a preferred stock to have dividends in arrears, it must be ____________.

(cumulative)

The ____________ is the date that corporate records are reviewed to determine who will receive a previously declared dividend.

(date of record)

A debit balance in Retained Earnings is commonly referred to as a ____________.

(deficit)

The taxing of income to the corporation, and the subsequent taxing of dividends to the stockholders is commonly termed____________.

(double taxation)

The significance of par value is that it represents ____________ per share of stock.

(legal capital)

Accounting for a small stock dividend is based on ____________ value.

(market)

When a corporation reissues treasury stock at more than its cost, the ____________ account should be increased.

(paid-in capital from treasury stock,paid in capital from treasury stock)

The ____________ allows existing shareholders the opportunity to maintain their respective interests in a corporate entity by acquiring additional shares on a pro rata basis.

(preemptive right)

A ____________ involves increasing the number of shares outstanding and reducing the stock's par or stated value per share.

(stock split)

Corporations frequently purchase shares of their own stock. These shares are termed ____________.

(treasury stock)