Across
- 2. A business organized under state law that is a separate legal entity (1 word)
- 4. The ratio that measures the value that the stock market places on $1 of a company’s earnings. The formula is Market price per share of common stock / Earnings per share (3 words).
- 5. When common stock is issued, this account is credited (2 words)
- 7. A corporation’s equity, which includes the 2 sources Paid-in capital and Retained earnings (2 words)
- 8. A contra equity account that has a normal debit balance, is a reduction to total stockholders’ equity, can be sold at cost, below cost, or above cost, and is a corporation’s own stock that it has previously issued and later reacquired (2 words).
- 9. Earnings per share for ‘income from continuing operations’ must be reported on the face of this statement (2 words)
- 11. These individuals receive a dividend preference, which ensures they will receive dividends first (2 words).
- 13. This transaction does not affect any account balances, no journal entry is needed, but it will increase the number of issued and outstanding shares of stock coupled with a proportionate reduction in the par value of the stock (2 words).
- 17. Stock that has been issued and is in the hands of stockholders (2 words)
- 18. The payment of these will result in a decrease in both assets (Cash) and equity (Retained Earnings) (2 words)
- 19. Stock dividend that rarely occurs, but when declared, is accounted for at the stock’s par value instead of the stock’s market value, and is greater than 20% to 25% of the issued and outstanding stock (3 words).
Down
- 1. The ratio that calculates the amount of a company’s net income (loss) for each share of its outstanding common stock. The formula is (Net income – Preferred dividends) / Weighted average number of common shares outstanding (3 words).
- 3. When Treasury Stock is purchased, this account is debited (3 words)
- 6. Equity earned by profitable operations that is not distributed to stockholders (2 words)
- 10. Gives its owners certain advantages, such as the right to receive preferential dividends (2 words)
- 12. Stock dividend that is accounted for at the stock’s market value and is less than 20% to 25% of the issued and outstanding stock (3 words)
- 14. Amounts received from stockholders in exchange for stock (3 words)
- 15. The maximum number of shares of stock a corporate charter allows the corporation to issue (2 words)
- 16. These are distributions of a corporation’s stock and have no effect on total stockholders’ equity, assets, or liabilities (2 words)