Chapter 10
Unlike equity these do not impact ownership of the company.
What are bonds?
Corporations have many of the same rights as this.
What is an individual?
This is the calculation of basic EPS.
What is Net income less preferred dividends divided by the weighted average number of shares outstanding?
What is thirty one?
A sales receipt, check and employee time card are considered these.
What is a source document?
Unlike distributions to owners these are tax deductible.
What are bond interest payments?
Stockholders do not have the right to do this.
What is bind corporations to contracts?
This ratio is a measure of the market's expected receipts for the stockholders.
What is the Price-Earnings Ratio?
These are the three types of depreciation.
What is straight line, units or production and double declining balance?
This is the normal balance side for Accounts Payable and Unearned Revenue.
What is credit?
When a bond sells for more than it's par value this is the journal entry.
What is Debit to Cash, Credit to Bonds Payable and Credit to Premium on Bonds Payable?
This is the journal entry when 100 shares of $2 stated value stock sells for a total of $250.
What is Debit Cash for $250.
Credit Common stock, $2 stated value $200
Credit Paid-in capital in excess of stated value, common stock $50
This must be obtained from a state government in order to create a corporation.
What is a Charter?
Sometimes this might be issued as a means to ensure payment of a past due account payable.
What is a note?
This financial statement is Revenues less Expenses.
What is the Income Statement?
The first interest payment has this journal entry.
What is Debit to Bond interest expense
Debit to Premium on bonds payable
Credit to Cash?
When a corporation repurchases its own shares it is called this.
What is treasury stock?
This is who elects a corporations Board of Directors.
What are stockholders?
What is a Classified Balance Sheet?
When goods/services are provided to customers this principle is followed.
What is the Revenue Recognition principle?
When a bond is sold at a discount this is the journal entry for the first interest payment.
What is Debit to Bond interest expense
Credit to Discount on bonds payable
Credit to Cash?
This type of shareholder takes priority in dividend distribution.
What is preferred stock/stockholder?
On this date, no journal entry is required.
What is date of record?
If I have an 89.4 for a final grade my letter grade will be this.
What is a B+?
This principle requires the recording of expenses during the same time period as revenue reported.
What is the Matching Principle?