Chapter 10, Problem 1SE

Stockholders' equity terminology (Learning Objectives 1,2, 4 & 6) 10-15 min.

Match the following terms with the correct definition.

a. Common stock b. Paid-in capital c. Dividends d. Legal capital e. Outstanding stock f. Par value g. Preferred stock h. Retained earnings i. Treasury stock j. Stockholders' equity

1. Paid-in capital plus retained earnings 2. Capital from investments try the stockholders 3. Capital earned through profitable operation of the business 4. The basic form of capital stock 5. Stock in the hands of stockholders 6. Distributions by a corporation to its stockholders 7. Stock that gives its owners certain advantages over common stockholders, such as the right to receive dividends before the common stockholders 8. Artiitrarv amount assigned to a share of stock at the time of incorporation 9. The portion of stockholders' equity maintained for the protection of creditors 10. A corporation's own stock that it reacquires.