Treasury Stock and Retained Earnings

A set of flashcards covering key concepts and terms related to treasury stock and retained earnings from the lecture notes.

Treasury Stock

Shares that were once a part of the outstanding shares but were later repurchased by the company.

Additional Paid-in Capital

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

Outstanding Shares

The total number of shares that are currently held by all shareholders, excluding treasury shares.

Dividends

Payments made by a corporation to its shareholder members, usually from profits.

Share Repurchase

When a company buys back its own shares from the marketplace.

Net Income

The total profit of a company after all expenses are subtracted from revenue.

Debit Treasury Stock

The accounting entry made to record the repurchase of shares.

Credit Cash

The action of reducing the cash account when shares are repurchased.

Issuing Common Stock

The process by which a company offers shares to investors in exchange for capital.

Reporting Retained Earnings

The process of documenting the cumulative earnings of a corporation that have not been distributed to shareholders as dividends.