A list of terms and a list of definitions or examples are presented below. Make a list of the numbers 1 through 12 and match the letter of the most directly related definition or example with each number.
1. Stock warrant
2. Date of record
3. Par value
4. Stock split
5. Treasury stock
6. Stock dividend
7. Preferred stock
8. Outstanding shares
9. Authorized shares
10. Declaration date
11. Comprehensive income
12. Retained earnings
Definitions and Examples
a. The state of Louisiana set an upper limit of 1,000,000 on the number of shares that Gump’s Catch, Inc., can issue.
b. Shares that never earn dividends
c. On October 15, 2008, General Electric announced its intention to pay a dividend on common stock.
d. Shares issued minus treasury shares
e. Common stock divided by the number of shares issued
f. A stock issue that requires no journal entry
g. Shares that may earn guaranteed dividends
h. Capitalizes retained earnings.
i. A right to purchase stock at a specified future time and specified price
j. Emerson Electric will pay a dividend to all persons holding shares of its common stock on December 15, 2008, even if they just bought the shares and sell them a few days later.
k. Any changes to stockholders’ equity from transactions with nonowners
l. The accumulated earnings over the entire life of the corporation that have not been paid out in dividends
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