Financial Accounting for Managers: Stockholders' Equity

This collection of flashcards focuses on key concepts and terms related to stockholders' equity as discussed in the lecture notes.

Stockholders' Equity

The owners' claims to assets of a corporation.

Contributed Capital

The amount stockholders have invested in the company.

Retained Earnings

The amount of earnings kept by the company that are not distributed in dividends.

Treasury Stock

A company's own issued stock that it has repurchased.

Accumulated Other Comprehensive Income (AOCI)

The accumulation of components of other comprehensive income, including unrealized gains and losses.

Par Value

The legal capital per share of stock assigned when the corporation is first established.

Preferred Stock

A class of stock that usually receives fixed dividends and has priority over common stock in asset distribution.

Cumulative Dividend Preference

Unpaid dividends from previous years must be paid before common stock dividends.

Noncumulative Dividend Preference

Current dividends must be paid without obligation to cover unpaid dividends from previous years.

Stock Dividends

Additional shares of stock distributed to shareholders instead of cash.

Stock Split

An increase in the number of shares outstanding with a proportionate decrease in the share value.

Dividends Payable

A liability recorded when dividends are declared but not yet paid.

Current Dividend

Dividends that must be paid for the current period.

Outstanding Stock

Shares that have been issued and are held by investors.

Authorized Stock

The total number of shares that a corporation is legally allowed to issue.

Additional Paid-In Capital

The amount received from shareholders above the par value of the stock.