In: Accounting
Match the items below by entering the appropriate answer letter choice from the column provided on the right.
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| Questions | Correct answers [Terms] | ||
| 1.Net income retained in the corporation. | C. | Retained Earnings | |
| 2. Creditors cannot go after stockholder’s personal assets to satisfy their claims. | P. | Limited liability | |
| 3. Retained earnings currently unavailable for dividends. | H. | Retained Earnings restrictions | |
| 4. A corporation’s own stock that has been reacquired by the corporation. | E. | Treasury stock | |
| 5. Responsible to stockholders for corporate activity. | N. | Board of directors | |
| 6. The amount assigned to each share of stock in the corporate charter. | A. | Par value | |
| . | 7. The date the board of directors formally declares the dividend and announces it to stockholders. | G. | Declaration date |
| 8. A debit balance in retained earnings. | K. | Deficit | |
| 9. Capital contributed by stockholders. | L. | Paid-in capital | |
| 10. The death of a stockholder or employee does not affect the going concern of the corporation. | D. | Indefinite life | |
| 11. The company determines ownership of the outstanding shares for dividend purposes. | B. | Record date | |
| 12. Unit of ownership in a corporation. | J. | Capital stock | |
| - | 13. This type of dividend for the stockholder results in more shares of stock, but no change in ownership interest. | I. | Stock dividend |
| 14. The issuance of additional shares of stock to stockholders accompanied by a reduction in the par or stated value per share. This stock transaction does not require an accounting entry. | F. | Stock split | |
| 15. The acts of the owners (stockholders) do not bind the corporation. | O. | Separate legal entity | |