Match the Terms to the Definitions

question 221

Multiple Choice

Match the terms to the definitions.
-Shares of stock that are distributed in a process known as capitalization of retained earnings.

• A)Cumulative dividend preference
• B)Participating dividend preference
• C)Conversion privilege
• D)Call provision
• E)Stock split
• F)Stock dividend
• G)Retained earnings
• H)Outstanding shares
• I)Issued shares
• J)Retired shares
• K)Treasury stock
• L)Paid-in capital in excess of par

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Definitions:

Financial Statements

Financial statements are formal records that outline the financial activities and position of a business, person, or entity. These include income statements, balance sheets, and statements of cash flows.

Working Paper

A document that records the evidence, processes, and reasoning behind an accountant's audit or financial analysis.

Income Statement Columns

The structured classification of financial data in the income statement, typically involving revenues, expenses, and net income or loss.

Adjusted Trial Balance

The Adjusted Trial Balance is a list of all accounts and their balances after adjusting entries are made, serving as a checkpoint before financial statements are prepared.