Shares
The amount of shares that the company is allowed to sell as indicated by its articles of incorporation.
Authorized capital
Liabilities+capital=
Assets
Receives cash dividends before common/ordinary shareholders
Preference shareholders
An intangible asset
patents, copyrights,trademarks, franchise, goodwill
The aggregate number of shares sold to the public
Issued capital
Shares remaining in the hands of the shareholders
Outstanding shares
Every transaction has a debit and a corresponding _____ entry
credit
Three important dates : Record date, payment date and _____
Declaration date
A debt security issued by companies and government units to secure large amounts of capital on a long term basis
Bonds
The value that has been assigned to the share in the articles of incorporation
Par value
The actual price that a financial instrument is worth at any given time for trade on the stock market.
market value
To increase an asset we must
This dividend must be paid out of realized profits only
Stock dividends
When accounting for temporary debt investments, entries are required to record three things: the acquisition, the interest revenue and _______
The sale
Are shares issued with the aim of repurchasing them in the future when there is surplus cash in the company.
redeemable shares
The shareholder's equity chapter on the balance sheet consists of paid up capital, reserves and __________
retained earnings
debit
Announces their intention to pay dividend
Board of directors
Cash or other assets segregated to retire debt.
Sinking fund
Temporary held shares, that have been issued, fully paid for and reacquired but not retired
Treasury stock/shares
The right to acquire a pro rata amount of any new issue of shares
Pre-emptive right
To increase revenue we
credit
Characteristic of preference shares which allows for the issue of dividends in arrears.
Cumulative
Debt secured with a general claim against all assets
Debentures
Journal entries to record the issue of 20 000 shares of common stock at par value $2.00 per share
Dr Cash 40000
Cr ordinary share capital 40000