1. To start a corporation in the U.S., it is necessary to file an application in one of the states.

The legal
document that the state approves is the__________

2. One of the advantages of the corporation form of business as opposed to a partnership form is the
ease of transferring __________

3. At a corporation, Assets minus Liabilities is __________

4. Shares of stock that have been issued and have not been reacquired by the issuing corporation are
called _________shares.

5. If a corporation has issued only one type of stock, it is __________stock.

6. The type of stock that gets its dividend before the common stock gets its dividend is called
__________stock.

7. The holders of __________stock elect the corporation's board of directors.

8. The par value of __________stock usually has no economic significance.

9. The dividend on preferred stock is often expressed as a percentage. To calculate the annual dividend
on preferred stock, you multiply the percentage times the

__________

of the preferred stock.

10. If a corporation issues 10% Preferred Stock $100 Par on a day when the financial markets demand
9%, this corporation's 10% Preferred Stock will sell for

__________

than its par value.

11. If a common stock does not have a par value or a stated value, the entire proceeds from issuing the
stock is credited to one account entitled

__________

12. Stockholder's equity is subdivided into two major sections:

__________

and

__________

13. The net income of a corporation is closed to the

__________

account.

14. Dividends declared by a corporation reduce the

__________

section of stockholders' equity.

15.

Dividends appear as an expense on the corporation's income statement.

True
False
16.

If the board of directors does not declare the regular quarterly divided on its common stock, the
corporation's liabilities will include the omitted dividend.
True
False
17. The

__________

date is the date on which the corporation records a liability for its quarterly dividend.

18. The

__________

date determines which stockholders will receive a declared dividend.

19. If a corporation declares a small stock dividend, the account that will be reduced by a debit entry is

__________

20. A stockholder will have the same number of shares after a 3-for-2 stock split or after a

__________

% stock dividend.

21. A corporation's own shares of stock that have been reacquired from its stockholders but have not
been retired are called

__________

22. The account, Treasury Stock, will have either a zero balance or a

__________

(debit, credit) balance.

23. If a share of treasury stock is sold for more than its cost, the difference is credited to

__________

24.

Treasury stock sales can result in a loss on the corporation's income statement.
True
False
25. If preferred stockholders have the opportunity to receive more than the stated dividend percentage,
the stock is described as

__________

preferred stock.

26. Dividends in arrears occur only on

__________

preferred stock.

27. Dividends in arrears are reported in the financial statements in the

__________

28. If a preferred stock can be exchanged for a stated number of common shares, it is referred to as

__________

preferred stock.

29. The book value per share of preferred stock is its

__________

plus any dividends in

__________

30. Earnings per share means earnings per share of

__________

31. A debit balance in Retained Earnings will appear in stockholders' equity as

__________

32. The

__________

of a corporation declares the dividends.

33. The directors of a corporation appoint

__________

to carry out the corporation's policies and directives.

34. When a small stock dividend is declared, the

__________

value of the new shares is transferred from Retained Earnings to paid-in capital accounts.

35. A separate portion of stockholders' equity that reports certain gains and losses on hedges, foreign
currency translations, and pension liabilities that were not part of net income shown on the income
statement is

__________

1. Articles of incorporation
2. Ownership
3. Stockholders equity
4. Outstanding
5. Common
6. Preferred
7. Common
8. Common
9. Par value
10.More
11.Common stock
12.Paid in capital & Retained earnings
13.Retained earnings
14.Retained earnings
15.False
16.False
17.Declaration
18.Record
19.Retained earnings
20.50%
21.Treasury stock
22.Debit
23.Paid in capital from treasury stock
24.False
25.Participating
26.Cumulative
27.Notes
28.Convertible

29.Call price, arrears

30.Common stock
31.Deficit
32.BOD
33.Officers
34.Market
35.AOCI