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Match the Following Terms with Their Definitions

Question 138

Matching

Match the following terms with their definitions. Each letter is used only once.

Premises:
Accumulated deficit.
Value stocks.
Growth stocks.
100% stock dividend.
Stockholders' equity section of the balance sheet.
PE ratio.
Statement of stockholders' equity.
Retained earnings.
Return on equity.
Treasury stock.
Responses:
Priced high in relation to current earnings as investors expect future earnings to be higher
The earnings not paid out in dividends
Measures the ability of company management to generate earnings from the resources that owners provide
Effectively the same as a 2-for-1 stock split
The corporation's own stock that it reacquired
Shows the balance in each equity account at a point in time
Priced low in relation to current earnings
Summarizes the changes in the balance in each stockholders' equity account over a period of time
A debit balance in retained earnings
The stock price divided by earnings per share

Correct Answer:

Accumulated deficit.
Value stocks.
Growth stocks.
100% stock dividend.
Stockholders' equity section of the balance sheet.
PE ratio.
Statement of stockholders' equity.
Retained earnings.
Return on equity.
Treasury stock.
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