Solved

Match the Items Below by Entering the Appropriate Code Letter

Question 195

Matching

Match the items below by entering the appropriate code letter in the space provided.

Premises:

Responses:

Total number of each class of shares a corporation is allowed to sell.

Dividends

A distribution of cash or shares by a corporation to its shareholders on a pro rata basis

Retained earnings

The date when the board of directors formally declares a dividend and announces it to the shareholders.

Return on equity

Profit retained in the corporation

Declaration date

In a year when dividends are not declared, dividends for that year are lost to shareholders.

Issued shares

The number of shares that have been sold by the corporation.

Noncumulative feature

Preferred shareholders have a right to receive current and unpaid prior-year dividends before common shareholders receive any dividends.

Share capital

Amount paid or contributed to the corporation by a shareholder in exchange of shares of ownership.

Redeemable Preferred Shares

Ratio used to measure a firm's profitability and efficiency

Authorized shares

Allow the issuing corporation to buy back its own shares at specified future dates and prices.

Cumulative feature

Premises:

Total number of each class of shares a corporation is allowed to sell.

A distribution of cash or shares by a corporation to its shareholders on a pro rata basis

The date when the board of directors formally declares a dividend and announces it to the shareholders.

Profit retained in the corporation

In a year when dividends are not declared, dividends for that year are lost to shareholders.

The number of shares that have been sold by the corporation.

Preferred shareholders have a right to receive current and unpaid prior-year dividends before common shareholders receive any dividends.

Amount paid or contributed to the corporation by a shareholder in exchange of shares of ownership.

Ratio used to measure a firm's profitability and efficiency

Allow the issuing corporation to buy back its own shares at specified future dates and prices.

Responses:

Dividends

Retained earnings

Return on equity

Declaration date

Issued shares

Noncumulative feature

Share capital

Redeemable Preferred Shares

Authorized shares

Cumulative feature

Correct Answer:

Premises:

Responses:

Total number of each class of shares a corporation is allowed to sell.

A distribution of cash or shares by a corporation to its shareholders on a pro rata basis

The date when the board of directors formally declares a dividend and announces it to the shareholders.

Profit retained in the corporation

In a year when dividends are not declared, dividends for that year are lost to shareholders.

The number of shares that have been sold by the corporation.

Preferred shareholders have a right to receive current and unpaid prior-year dividends before common shareholders receive any dividends.

Amount paid or contributed to the corporation by a shareholder in exchange of shares of ownership.

Ratio used to measure a firm's profitability and efficiency

Allow the issuing corporation to buy back its own shares at specified future dates and prices.