The following are 10 technical accounting terms introduced or emphasized in Chapters 11 and 12:P/e ratio Treasury stock Discontinued operationsStock dividend Extraordinary item Prior period adjustmentBasic earnings per share Additional paid-in capital Diluted earnings per shareComprehensive incomeEach of the following statements may (or may not) describe one of these technical terms. Foreach statement, indicate the term described, or answer “None” if the statement does not correctlydescribe any of the terms.a. A gain or loss that is unusual in nature and not expected to recur in the foreseeable future.b. The asset represented by shares of capital stock that have not yet been issued.c. A distribution of additional shares of stock that reduces retained earnings but causes no changein total stockholders’ equity.d. The amount received when stock is sold in excess of par value.e. An adjustment to the beginning balance of retained earnings to correct an error previouslymade in the measurement of net income.f. A statistic expressing a relationship between the current market value of a share of commonstock and the underlying earnings per share.g. A separate section sometimes included in an income statement as a way to help investorsevaluate the profitability of ongoing business activities.
The following are 10 technical accounting terms introduced or emphasized in Chapters 11 and 12:
P/e ratio
Stock dividend Extraordinary item Prior period adjustment
Basic earnings per share Additional paid-in capital Diluted earnings per share
Comprehensive income
Each of the following statements may (or may not) describe one of these technical terms. For
each statement, indicate the term described, or answer “None” if the statement does not correctly
describe any of the terms.
a. A gain or loss that is unusual in nature and not expected to recur in the foreseeable future.
b. The asset represented by shares of capital stock that have not yet been issued.
c. A distribution of additional shares of stock that reduces
in total stockholders’ equity.
d. The amount received when stock is sold in excess of par value.
e. An adjustment to the beginning balance of retained earnings to correct an error previously
made in the measurement of net income.
f. A statistic expressing a relationship between the current market value of a share of common
stock and the underlying earnings per share.
g. A separate section sometimes included in an income statement as a way to help investors
evaluate the profitability of ongoing business activities.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
