Match the following terms to their correct definition.

Question

A. Document that authorizes the creation of the corporation, setting forth its name and purpose and the names of the incorporators.
B. If a corporation has only one class of stock, this is usually it.
C. The sum of all preferred stock, common stock, and additional paid-in capital account balances
D. Another term for articles of incorporation
E. Provides that current dividends must be paid to preferred stockholders before any dividends are paid to common stockholders.
F. Shareholders holding the shares on this date are the ones who receive any dividends that have been declared.
G. Date on which the Board of Directors votes to pay a dividend.
H. Cumulative preferred dividends that have not been paid.
I. Represents the owners' claims against the assets of a corporation after all liabilities have been deducted.
J. In a stock option plan, the price at which employees can buy the stock.
K. Dividends that are paid out of contributed capital because retained earnings have been reduced to zero.
L. Stock without a par value.
M. Date on which shareholders receive dividends that have been declared.
N. Individuals who hold this stock receive priority over common shareholders in the payment of dividends and the distribution of assets in the event of liquidation.
O. Refers to a situation where an error resulted in a misstatement of net income and the correction requires a debit or credit to retained earnings.
P. A performance measures that assesses the growth in equity from operating activities.

Answer 1

A. Articles of incorporation
B. Common stock
C. Contributed capital
D. Corporate charter
E. Current dividend preference
F. Date of record
G. Declaration date
H. Dividends in arrears
I. Equity
J. Exercise (strike) price
K. Liquidating dividend
L. No-par stock
M. Payment date
N. Preferred stock
O. Prior period adjustment
P. Return on common equity