Match the following terms with the correct definition. a. Common stock b. Paid-in capital c. Dividends d.

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Match the following terms with the correct definition.
a. Common stock
b. Paid-in capital
c. Dividends
d. Legal capital
e. Outstanding stock
f. Par value
g. Preferred stock
h. Retained earnings
i. Treasury stock
j. Stockholders’ equity
_______ 1. Paid-in capital plus retained earnings.
_______ 2. Capital from investments by the stockholders.
_______ 3. Capital earned through profitable operation of the business.
_______ 4. The basic form of capital stock.
_______ 5. Stock in the hands of stockholders.
_______ 6. Distributions by a corporation to its stockholders.
_______ 7. Stock that gives its owners certain advantages over common stock- holders, such as the right to receive dividends before the common stockholders.
_______ 8. Arbitrary amount assigned to a share of stock at the time of incorporation.
_______ 9. The portion of stockholders’ equity maintained for the protection of creditors.
_______ 1 0. A corporation’s own stock that it reacquires.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Financial Accounting

ISBN: 978-0133052152

2nd edition

Authors: Robert Kemp, Jeffrey Waybright

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