152. Match (by letter) the following terms with their definitions. Each letter is used only once.
Terms
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_____1. Angel investors
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_____ 2. Paid-in capital
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_____3. Issued stock
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_____4. Authorized stock
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_____ 5. Redeemable
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_____6. Cumulative
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_____7. Retained earnings
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_____8. Limited liability
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_____9. Treasury stock
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_____10. Outstanding stock
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Definitions
a. The amount invested by stockholders.
b.Shares available to sell.
c.Shares can be returned to the corporation at a predetermined price.
d.The earnings not paid out in dividends.
e.Shares actually sold.
f.Shares receive priority for future dividends, if dividends are not paid in a given year.
g.Shares held by investors.
h.Shareholders can lose no more than the amount they invested in the company.
i.Wealthy individuals willing to risk investment funds on a promising business venture.
j.The corporation’s own stock that it reacquired.
153. Match each of the following preferred stock features with its description.
Preferred Stock Features
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Description
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_____ 1. Convertible
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a. Shares receive dividend priority, if dividend not paid.
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_____ 2. Redeemable
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b. Shares can be exchanged for common stock.
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_____ 3. Cumulative
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c. Shares can be sold at a predetermined price.
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|
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154. Match (by letter) the following terms with their definitions. Each letter is used only once.
Terms
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_____1. Statement of stockholders’ equity
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_____2. Treasury stock
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_____3. Value stocks
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_____ 4. Retained earnings
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_____5. PE ratio
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_____6. Stockholders’ equity section of the balance sheet
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_____ 7. Return on equity
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_____8. Growth stocks
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_____ 9. 100% stock dividend
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_____10. Accumulated deficit
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Definitions
a. A debit balance in retained earnings.
b.Priced high in relation to current earnings as investors expect future earnings to be higher.
c.Effectively the same as a 2-for-1 stock split.
d.The earnings not paid out in dividends.
e.The stock price divided by earnings per share.
f.Summarizes the
changes
in the balance in each stockholders’ equity account
over a period of time.
g.Priced low in relation to current earnings.
h.Measures the ability of company management to generate earnings from the resources that owners provide.
i.Shows the balance in each equity account
at a point in time.
j.The corporation’s own stock that it reacquired.