1. Authorized Number of Shares
    is the maximum number of shares of a corporation's capital stock that can be issued as specified in the charter.
  2. Issued Shares
    represent the total number of shares of stock that have been sold.
  3. Outstanding Shares
    refer to the total number of shares of stock that are owned by stockholders on any particular date.
  4. Common Stock
    is the basic voting stock issued by a corporation.
  5. Par Value
    is the nominal value per share of capital stock specified in the charter; serves as the basis for legal capital.
  6. Legal Capital
    is the permanent amount of capital defined by state law that must remain invested in the business; serves as a cushion for creditors.
  7. No-Par Value Stock
    is capital stock that has no par value specified in the corporate charter.
  8. Treasury Stock
    is a corporation's own stock that has been issued but subsequently reacquired and is still being held by that corporation.
  9. Declaration Date
    is the date on which the board of directors officially approves a dividend.
  10. Record Date
    is the date on which the corporation prepares the list of current stockholders as shown on its records; dividends can be paid only to the stockholders who own stock on that date.
  11. Payment Date
    is the date on which a cash dividend is paid to the stockholders of record.
  12. Stock Dividend
    is a distribution of additional shares of a corporation's own stock.
  13. Stock Split
    is an increase in the total number of authorized shares by a specified ratio; it does not decrease retained earnings.
  14. Preferred Stock
    is stock that has specified rights over common stock.
  15. Current Dividend Preference
    is the feature of preferred stock that grants priority on preferred dividends over common dividends.
  16. Cumulative Dividend Preference
    is the preferred stock feature that requires specified current dividends not paid in full to accumulate for every year in which they are not paid. These cumulative preferred dividends must be paid before any common dividends can be paid.
  17. Dividend in Arrears
    are dividends on cumulative preferred stock that have not been declared in prior years.
  18. Held-to-Maturity Investments
    are investments in debt securitites that management has the intent and ablility to hold until maturity.
  19. Amortized Cost Method
    reports investments in debt securities held to maturity at cost minus any premium or plus any discount.
  20. Fair Value Method
    is used to report securities at their current market value (the amount that would be received in an orderly sale).
  21. Unrealized Holding Gains or Losses
    are amounts associated with price changes of securities that are currently held.
  22. Trading Securities
    are all investments in stocks or bonds held primarily for the purpose of active trading (buying and selling) in the near future (classified as short term).
  23. Securities Available for Sale
    are all passive investments other than trading securities and debt held to maturity (classified as short or long term).
  24. Equity Method
    is used when an investor can exert significant influence over an affiliate; the method permits recording the investor's share of the affiliate's income.
  25. Investment in Affiliates
    are investments in stock held for the purpose of influencing the operating and financing strategies of the entity for the long term.
  26. Asset
    Any resource owned that provides future economic benefit.
  27. Liability
    any debt or obligation of a business.
  28. Financing of the business by the owners' investment and profits.
  29. Revenue
    an inflow of assets in exchange for goods or services provided.
  30. Expenses
    the cost of goods or services consumed in the production of revenue.
Card Set
Account Exam VI