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?
These are the three sections of the Statement of Cash Flows.
What is Operating, Investing and Financing?
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?
If I have an 89.4 for a final grade my letter grade will be this
What is a B+?
This is the first thing added in to Net Income in the Operating section of SCF.
What is depreciation (amortization, depletion)?
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?
These three items are needed to prepare the Statement of Cash Flows.
What is comparative balance sheet, income statement and additional notes?
The first interest payment has this journal entry.
What is Debit to Bond interest expense
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?
The income statement is a measure of profitability, the Statement of Cash Flows is a measure of _________.
What is liquidity?
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?
Who would win the Participation award for this class?
answers will vary
A current asset account decreases from prior year to current year. The Statement of Cash Flows would show a ____________ amount.
What is a positive