45) Match each of the following items with the appropriate definition. Each item should be used only once.
a.shareholders
bpreferred stock
c.dividends
d.date of record
e.paid-in capital
f.declaration date
g.earnings per share
h.contra-equity account
i.cash dividends
______ 1. Type of corporate stock which has preference rights over common stock
______ 2. Corporate distribution of earnings to the shareholders of the corporation
______ 3. A distribution of earnings in the form of cash to the shareholders of a corporation
______ 4. Date when the board of directors of a corporation authorizes the payment of dividends to the shareholders of the corporation
______ 5. Date used to determine which shareholders should receive dividends; anyone owning stock on this date is entitled to receive dividends
______ 6. A company’s net income stated on a per share basis
______ 7. Treasury stock is this type of an account because its balance is deducted to arrive at total shareholders’ equity
______ 8. Owners’ contributions to a firm
______ 9. Owners of a corporation
46) Apply each of the following items to the information needed by analysts in each of the following situations. More than one item may be applied to some situation(s).
a. earnings per share
b. retained earnings
c. net income
d. return on equity
______ 1. Morgan Washington, Certified Financial Planner, wants to understand how well the management of a company is using the owners’ equity invested in a company to earn profit.
______ 2. Board member Amy Jackson wants to know if authorizing a $1.00 per share dividend is prudent.
______ 3. Investor Craig Little is comparing the profitability of several companies.