Match the Terms with the Definitions

question 44

Multiple Choice

Match the terms with the definitions.
-The total number of shares that the corporate charter authorizes a corporation to issue.

• A)authorized stock
• B)board of directors
• C)bylaws
• D)premium
• E)capital stock subscription
• F)preferred stock
• G)paid-in capital
• H)cumulative preferred stock
• I)dividends
• J)double taxation
• K)outstanding stock
• L)no-par stock

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Definitions:

Contingent Consideration

Additional payment in a business acquisition that depends on specific future events, such as reaching certain performance milestones.

Interest Expense

The cost incurred by an entity for borrowed funds, recognized as a finance expense or interest cost.

Discount Rate

The discount rate applied in the evaluation of discounted cash flow (DCF) to calculate the current worth of future cash flows.

Proportionate Consolidation Method

The proportionate consolidation method is an accounting technique where a parent company combines a portion of its subsidiary's assets, liabilities, income, and expenses in proportion to its ownership interest in the subsidiary.