Home > Flashcards > Accounting > Financial Accounting

Details Title: Financial Accounting Description: Ch. 11 Total Flash Cards: 13 Created: 04/07/2004 13:32:11	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Rights of a common stock owner Definition -A voice in managment -Dividends -Residual Claim Term How are corporations created? Definition By application to a state government, which issues a charter. Term authorized number of shares Definition the maximum number of shares that can be sold Term issued shares Definition the total number of shares of stock that have been sold Term outstanding shares Definition the total number of shares of stock that are owned by stockholders on any particular date Term Earnings per Share Definition (Income) ---------------------------------- Avg # of Common Shares Outstanding Measures profitability (but may be misleading if comparing 2 companies with very different share values) Term common stock Definition the basic voting stock Term How is the dividend rate for common stock determined? Definition by the board of directors based on the company's profitability Term par value Definition the nomial value per share of capital stock specified by the charter; serves as the basis for legal capital Term legal capital Definition the permanent amount of capital defined by state law that must remain invested in the business; serves as a cushion for creditors Term the 2 components of contributed capital Definition -common stock -paid-in capital Term IPO Definition Initial Public Offering Term seasoned new issue Definition the sale of stock to the public after the IPO