Wednesday, September 24, 2008

Chapter 13: Corporations: Organization and Capital Stock Transactions

1903 stock certificate of the Baltimore and Oh...Image via Wikipedia

What is Authorized Stock?
Authorized stock is the number of shares that the State Department in Albany authorized the corporation to sell, and which is specified in the charter.

What is Book Value per Share?
Book value per share is the ownership or equity a common stockholder has in the net assets of the corporation. (NOTE: net assets equal the total amount of the stockholders equity section).

What are By-Laws?
By-laws are the internal rules and regulations that the corporation follows to administer its business.

What is Cash Dividend?
A cash dividend is a distribution of earnings by a corporation to its shareholders.

What is the Charter?
The charter is the legal document that the State Department issues and which authorizes the creation of the corporation.

What is Common stock?
Common stock is the outstanding stock when a corporation has issued only one class of stock.

What is the Definition of ‘Corporation’?
A corporation is a business organized as a legal entity separate and distinct from its owners under state corporation law.

How Did Justice John Marshall Define ‘Corporation’?
In 1819 Chief Justice John Marshall defined a corporation as “an artificial being, invisible, intangible, and existing only in contemplation of law.

What is Cumulative Dividend?
Cumulative dividend is a feature of preferred stock that requires that the corporation pay the stockholder the current and the unpaid prior-year dividends before common stockholders receive their dividends.

What is Cumulative Preferred Stock?
Cumulative preferred stock is a class of preferred stock that has a right to receive regular dividends that have been passed (not declared) before any common stock dividends are paid.

What is Nonparticipating Preferred stock?
Nonparticipating Preferred Stock is a class of preferred stock whose dividend rights are usually limited to a certain amount.

What is No-par Value Stock?
No-par value stock is capital stock that has not been assigned a value in the corporate charter.

What are Organization Costs?
Organization costs are various costs and expenses incurred in the formation of a corporation.

What is Outstanding Stock?
Outstanding stock is issued stock which is in the hands of stockholders.

What is Paid-in-Capital?Paid-in-Capital is the contributed cash and other assets paid by shareholders to a corporation in exchange for capital stock.

What is Par Value?
Par value is the monetary value assigned to a share in the corporate charter.

What is Preferred Stock?
Preferred stock is a class of stock with preferential rights over common stock.

What is a Privately Held Corporation?
A privately held corporation is a corporation that has only a few stockholders and whose stock is not available for sale to the general public.

What is a Publicly Held Corporation?
A publicly held corporation is a corporation that may have many stockholders and whose stock is traded in organized security markets.

What is Retained Earnings?
Retained earnings is the account into which the net income is transferred from the Income Summary Account.

What is Retained Earnings Statement?
The Retained Earnings Statement is a financial statement that summarizes the changes in the retained earnings of a corporation for s specific period of time, such as a month, quarter, or year.

What is Stated Value?
Stated value is a value similar to par value, approved by the board of directors of a coporation for no-par stock.

What is Stock?
Stock is a certificate of ownership in a corporation.

How do we Define Stockholders?
Stockholders are the owners of a corporation.

What is Stockholders’ Equity?
Stockholders’ Equity is the owners’ equity in a corporation; also called ‘net assets.’

What is Treasury Stock?
Treasury Stock is the corporation’s own stock that has been issued and then reacquired from shareholders.

Ch1 Accounting in Action

Ch2 Recording Process

Ch3 Adjusting the Accounts

Ch4 Completing the Accounting Cycle

Ch5 Merchandising Operations

Ch6 Inventories

Ch7 Accounting Information Systems

Ch8 Internal Control and Cash

Ch9 Accounting for Receivables

Ch10 PP&E, Natural Resources, and Intangible Assets

Ch11 Current Liabilities and Payroll

Ch12 Partnerships

Ch13 Corporations

Ch14 Corporations:Dividends, RE

Ch15 Long Term Liabilities

Ch16 Investment

Ch17 Statement of Cash Flows

Ch18 Financial Statement Analysis

Plato and Accounting

Price/Earnings Ratio

Plant Assets

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