chapter 8 quiz review

amount associated with the capital stock that has been issued by a corporation. legal capital is generally the par value or stated value of the shares issued

legal capital

called capital stock when no other classes of stock are authorized

common stock

class of stock that represents residual ownership of the corporation (capital stock)

common stock

member of the firm's board of directors who is also an officer or employee of the firm

inside director

stockholders' equity captions usually seen in a balance sheet: 4)

less: treasury stock

stockholders' equity captions usually seen in a balance sheet: 2)

retained earnings (accumulated deficit if negative)

claim of the entity's owners/stockholders to the assets shown in the balance sheet

stockholders' equity

member of the firm's board of directors who is not an officer or employee of the firm

independent directory (outside)

another term for stockholder's equity

net assets

assets - liabilities

net assets

stockholders' equity captions usually seen in a balance sheet:

noncontrolling interest (which is actually the equity interest held by nonowners of the reporting entity)

amount of money shareholders have paid into the company by purchasing shares

paid in capital

amounts invested in the corporation by stockholders and are sometimes referred to as contributed capital

paid-in capital

made up number (stated value)

par value

owner's equity in a partnership

partners' capital

owners' equity of an individual proprietorship

proprietor's capital

stockholders' equity captions usually seen in a balance sheet: 1)

1) paid in capital a) preferred stock (sometimes issued) b) common stock (always issued) c) additional paid-in capital

stockholders' equity captions usually seen in a balance sheet: 3)

accumulated other comprehensive income (loss)