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AR Acct II - Unit 4
Arkansas Accounting II - Unit 4 vocabulary
| Question | Answer |
|---|---|
| additional paid-in-capital | capital received from investors in exchange for stock |
| amortization | to write off a portion of a bond discount or premium over the life of the bond issue |
| articles of incorporation | an application to organize a business as a corporation made to appropriate state officials |
| board of directors | a group of individuals, elected by stockholders, who govern and are responsible for the affairs of the corporation |
| bond | a long-term liability in which the corporation promises to repay a certain amount at a specified date and to pay interest at set time |
| bond issue | the total amount of bonds issued at the same time |
| bond sinking fund | a special fund used to pay off a bond issue when it comes due |
| charter | the approved articles of incorporation |
| common stock | a title given to stock when only one class is issued by the corporation |
| corporation | an artificial legal entity that has rights and responsibilities of its own |
| date of declaration | date on which a board of directors authorizes a dividend |
| date of payment | date on which a dividend is actually paid |
| date of record | one to two weeks date of declaration; stockholders owning stock on this date will receive a declared dividend |
| declaring a dividend | action by a board of directors to distribute corporation earnings to stockholders |
| discount on capital stock | the amount by which the face value of a bond exceeds the issue price of the bond |
| earnings per share | a measure of the amount of profit that could be assigned to each share of common stock; calculated by dividing net income by the number of outstanding shares of common stock |
| equity per share | the amount that would be paid on each share of stock if the corporation liquidated and the assets were sold for their book value; calculated by dividing the total stockholders' equity by the number of shares of common stock outstanding |
| intangible assets | long-lived assets that have no physical substance |
| market value | the current price that is being charged for an item in the marketplace |
| no-par-value stock | stock that does not have a value printed on the stock certificate |
| organization costs | cost directly related to establishing a corporation |
| purchases available for sale | the total amount of beginning inventory in addition to purchases added during a period of time |
| par value | a value assigned to a share of stock and printed on the stock certificate |
| par-value stock | stock that has a specific value printed on the stock certificate |
| preferred stock | stock that has preferences over common stock, usually in relation to dividends |
| price-earnings ratio | a measure used to determine whether the market price of a corporation's stock is reasonable; calculated by dividing the market price per share by the earnings per share |
| rate earned on average stockholders' equity | the relationship between net income and average stockholders' equity |
| rate earned on average total assets | the relationship between net income and average total assets |
| retained earnings | the accumulated profits of a company |
| retiring a bond issue | paying the amounts owed to bondholders of a bond issue |
| serial bonds | a bond issue that has a series of maturity dates |
| stated-value stock | the value assigned to a share of no-par stock by the board of directors |
| statement of cash flow | a financial statement that shows a company's incoming and outgoing money during a time period (often monthly or quarterly) |
| stock certificate | a document showing how many shares of corporation stock are owned |
| subscribing for captial stock | the process of selling stock to investors on an installment basis |
| term bonds | a bond issue in which all bonds have the same term or maturity date |
| treasury stock | stock that has been issued by a corporation and then reacquired and held |
| trustee | a bank appointed to ensure that a corporation fulfills all its responsibilites to bondholders |
Created by:
patflanigan
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