68d ago
LA

Ch 9, 10, 12 P2


  • Types of common stock

    • authorized- shares available to sell

    • Issued- shares sold

    • Outstanding- shares issued and held by investors 

    • Treasury- shares issued and repurchased by the company 

  • Legal capital- per share of stock that’s assigned when the corporation’s ID is first established 

  • Treasury stock- companies by back their stock to boos underpriced stock, to distribute surplus cash without paying dividends, to boost earnings per share, to satisfy employee stock ownership plans

  • Retained earnings- represent all net income, less all dividends, since the company began operations. 

  • Dividends dates

    • Declaration date- date on which the board of directors announces the next dividend to be paid 

    • Record date- the date on which the company looks at its records to determine who the stockholders of the company are 

    • Payment date- the date of the actual distribution of dividends 

  • Stock split- a large stock dividend that includes reduction in the par or stated in the par or stated value per share 

  • Earnings per share- measure net income earned per share of common stock 

  • Income statement- items expressed as a percentage of sales 

  • balance sheet- items expressed as a percentage of total assets 

  • Profitability ratios- measure the earnings or operating effectiveness of a company over a period of time, such as a year 

  • Earnings persistence- current earnings that will continue or persist into future years 

  • One-time income items- certain items are part of net income in the current year but are not expected to persist 

  • Conservative accounting practices- lower income, lower assets, higher liabilities

  • Aggressive accounting practices- higher income, higher assets, lower liabilities 



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Ch 9, 10, 12 P2

  • Types of common stock

    • authorized- shares available to sell

    • Issued- shares sold

    • Outstanding- shares issued and held by investors 

    • Treasury- shares issued and repurchased by the company 

  • Legal capital- per share of stock that’s assigned when the corporation’s ID is first established 

  • Treasury stock- companies by back their stock to boos underpriced stock, to distribute surplus cash without paying dividends, to boost earnings per share, to satisfy employee stock ownership plans

  • Retained earnings- represent all net income, less all dividends, since the company began operations. 

  • Dividends dates

    • Declaration date- date on which the board of directors announces the next dividend to be paid 

    • Record date- the date on which the company looks at its records to determine who the stockholders of the company are 

    • Payment date- the date of the actual distribution of dividends 

  • Stock split- a large stock dividend that includes reduction in the par or stated in the par or stated value per share 

  • Earnings per share- measure net income earned per share of common stock 

  • Income statement- items expressed as a percentage of sales 

  • balance sheet- items expressed as a percentage of total assets 

  • Profitability ratios- measure the earnings or operating effectiveness of a company over a period of time, such as a year 

  • Earnings persistence- current earnings that will continue or persist into future years 

  • One-time income items- certain items are part of net income in the current year but are not expected to persist 

  • Conservative accounting practices- lower income, lower assets, higher liabilities

  • Aggressive accounting practices- higher income, higher assets, lower liabilities