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 |