Advanced Balance Sheet Topics

Flashcards covering key vocabulary from Advanced Balance Sheet Topics.

Contributed Capital

Capital that has been paid-in by investors, including common stock (CS), preferred stock (PS), and additional paid-in capital (Add. PIC).

Earned Capital

Retained earnings that represent cumulative net income minus cumulative dividends.

Treasury Stock

Shares that were issued but have been repurchased by the company.

Accumulated Other Comprehensive Income (AOCI)

Unrealized gains and losses recorded in equity.

Common Stock IPO

The first issuance of a company’s stock to the public.

Authorized Stock

Total number of shares available to sell as specified in the charter.

Issued Shares

Number of shares sold to investors, which includes treasury stock.

Outstanding Shares

Number of shares held by investors, excluding treasury stock.

Par Value

The legal capital assigned per share of stock, with no relationship to the market value.

Additional Paid-in Capital (APIC)

The amount paid for stock over par value.

Dividends

Distributions by a corporation to its stockholders, which reduce retained earnings.

Declaration Date

The day the board of directors declares a cash dividend to be paid.

Date of Record

The date when registered owners of stock are determined.

Payment Date

The date of the cash distribution of dividends.

Bad Debts Expense

An Income Statement account that tracks the amount of accounts receivable not expected to be paid.

Allowance for Doubtful Accounts (ADA)

The amount of accounts receivable not expected to be collected, considered a contra asset.

Net Accounts Receivable

Total accounts receivable minus the allowance for doubtful accounts.