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QUESTION 1 Match the term with the description The residual corporate interest that bears the risk of loss and receives the benefit of success. Requires that if a corporation fails to pay a dividend in any year, it must make it up in a later year before paying any dividends to common stockholders. A company will debit the Treasury Stock account for the reacquisition cost of the stock. A special class of shares that possess certain preferences, characteristics, or features not possessed by common stock. Represents the earned capital of the company. V The issuance by a corporation of its own stock to its stockholders on a pro rata basis, without receiving any consideration. A corporation's own stock reacquired after having been issued and fully paid. The action creates more shares in the market which decreases the market price. When a corporation issues two or more classes of securities for a single payment. The number of shares of issued stock that stockholders own. a. Preferred Stock b. Common Stock c. Outstanding Stock d. Retained Earnings e. Cumulative Preferred Stock f. Treasury Stock Stock Dividend h. Stock Split i. Lump-sum Saales j. Cost Method

QUESTION 1 Match the term with the description The residual corporate interest that bears the risk of loss and receives the benefit of success. a. Preferred Stock Requires that if a corporation fails to pay a dividend in any year, it must make it up in a later year before paying any dividends to b. Common Stock common stockholders. c. Outstanding Stock A company will debit the Treasury Stock account for the reacquisition cost of the stock. d. Retained Earnings A special class of shares that possess certain preferences, characteristics, or features not possessed by common stock e. Cumulative Preferred Stock f. Treasury Stock g. Stock Dividend Represents the earned capital of the company h. Stock Split The issuance by a corporation of its own stock to its stockholders on a pro rata basis, without receiving any consideration i. Lump-sum Saales A corporation's own stock reacquired after having been issued and j. Cost Method fully paid The action creates more shares in the market which decreases the market price When a corporation issues two or more classes of securities for a single payment The number of shares of issued stock that stockholders own

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