Stockholders' Equity

A stockholder will have the same number of shares after a 3-for-2 stock split or after a __________ % stock dividend.

50%

A separate portion of stockholders' equity that reports certain gains and losses on hedges, foreign currency translations, and pension liabilities that were not part of net income shown on the income statement is __________ .

accumulated other comprehensive income

To start a corporation in the U.S., it is necessary to file an application in one of the states. The legal document that the state approves is the

articles of incorporation

Dividends in arrears occur only on __________ preferred stock.

cumulative

The __________ of a corporation declares the dividends.

board of directors

The book value per share of preferred stock is its __________ plus any dividends in __________ .

call price; arrears

If a corporation has issued only one type of stock, it is __________ stock.

common

The holders of __________ stock elect the corporation's board of directors.

common

The par value of __________ stock usually has no economic significance.

common

Earnings per share means earnings per share of __________ .

common stock

If a common stock does not have a par value or a stated value, the entire proceeds from issuing the stock is credited to one account entitled __________

common stock

If a preferred stock can be exchanged for a stated number of common shares, it is referred to as __________ preferred stock.

convertible

Dividends appear as an expense on the corporation's income statement.

false

If the board of directors does not declare the regular quarterly divided on its common stock, the corporation's liabilities will include the omitted dividend.

false

The account, Treasury Stock, will have either a zero balance or a __________ (debit, credit) balance.

debit

The __________ date is the date on which the corporation records a liability for its quarterly dividend.

declaration

Treasury stock sales can result in a loss on the corporation's income statement.

false

A debit balance in Retained Earnings will appear in stockholders' equity as __________ .

deficit or accumulated deficit

When a small stock dividend is declared, the __________ value of the new shares is transferred from Retained Earnings to paid-in capital accounts.

market

If a corporation issues 10% Preferred Stock $100 Par on a day when the financial markets demand 9%, this corporation's 10% Preferred Stock will sell for __________ than its par value.

more

Dividends in arrears are reported in the financial statements in the __________ .

notes or footnotes

The directors of a corporation appoint __________ to carry out the corporation's policies and directives.

officers

Shares of stock that have been issued and have not been reacquired by the issuing corporation are called __________ shares.

outstanding

One of the advantages of the corporation form of business as opposed to a partnership form is the ease of transferring

ownership

The dividend on preferred stock is often expressed as a percentage. To calculate the annual dividend on preferred stock, you multiply the percentage times the __________ of the preferred stock.

par value

If preferred stockholders have the opportunity to receive more than the stated dividend percentage, the stock is described as __________ preferred stock.

participating

The type of stock that gets its dividend before the common stock gets its dividend is called __________ stock.

preferred

The __________ date determines which stockholders will receive a declared dividend.

record

At a corporation, Assets minus Liabilities is

stockholder's equity

A corporation's own shares of stock that have been reacquired from its stockholders but have not been retired are called __________.

treasury stock