Chapter 11: Accounting for Equity

Retained earnings separately reported to inform stockholders of funding needs

Total amount of stock that a corporation's charter authorizes it to issue.

Net income less any preferred dividends and then divided b weighted-average common shares outstanding

Recorded amount of equity applicable to common shares divided by the number of common shares outstanding.

Equity applicable to preferred shares (equals its call price (or par value if it is not callable) plus any cumulative dividend in arears) divided by the number of preferred shares outstanding.

Amount that must be paid to call and retire a callable preferred stock or a callable bond

Preferred stock that the issuing corporation, at its option, may retire by paying the call price plus any dividendsd in arrears.

General term referring to a corporation's stock used in obtaining capital (owner financing)

Changes in an accountin estimate that reslults form new information, subsequent developments, or improved judgment jtha timpacts current and future periods.

Corporation's basic ownership share; also generically called capital stock.

Capital structure that includes outstanding rights or options to purchase comon stock, or securities that are convertible into common stock

Preferred stock with an option to exchange it for common stock at a specified rate

Business that is separate legal entity under state or federal laws with owners called shareholders or stockholders

Preferred stock on which undeclared dividends accumulate until paid; common stockholders cannot receive dividends until cumulative dividends are paid.

Date of directors vote to pay a dividend