Solved

Match the Items Below by Entering the Appropriate Code Letter

Question 277

Matching

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

Premises:

Responses:

Corporation’s own stock that has been reacquired by the corporation but not retired.

Payout ratio

A debit balance in retained earnings.

Debenture bonds

The date the board of directors formally declares a dividend.

Stock dividend

The amount that must be retained in the business for the protection of creditors.

Market interest rate

The chief accounting officer.

Cumulative feature

The amount assigned to each share of stock in the corporate charter

Preemptive right

A pro rata distribution of the corporation’s own stock to stockholders.

Times interest earned

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

Controller

Enables stockholders to maintain their same percentage ownership when new shares are issued.

Treasury stock

Measures the percentage of earnings distributed in the form of dividends to common stockholders

Declaration date

Premises:

Corporation’s own stock that has been reacquired by the corporation but not retired.

A debit balance in retained earnings.

The date the board of directors formally declares a dividend.

The amount that must be retained in the business for the protection of creditors.

The chief accounting officer.

The amount assigned to each share of stock in the corporate charter

A pro rata distribution of the corporation’s own stock to stockholders.

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

Enables stockholders to maintain their same percentage ownership when new shares are issued.

Measures the percentage of earnings distributed in the form of dividends to common stockholders

Responses:

Payout ratio

Debenture bonds

Stock dividend

Market interest rate

Cumulative feature

Preemptive right

Times interest earned

Controller

Treasury stock

Declaration date

Correct Answer:

Premises:

Responses:

Corporation’s own stock that has been reacquired by the corporation but not retired.

A debit balance in retained earnings.

The date the board of directors formally declares a dividend.

The amount that must be retained in the business for the protection of creditors.

The chief accounting officer.

The amount assigned to each share of stock in the corporate charter

A pro rata distribution of the corporation’s own stock to stockholders.

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

Enables stockholders to maintain their same percentage ownership when new shares are issued.

Measures the percentage of earnings distributed in the form of dividends to common stockholders