Match the Items Below by Entering the Appropriate Code Letter

question 8

Short Answer

Match the items below by entering the appropriate code letter in the space provided.
____ 1. Net income retained in the corporation.
____ 2. The amount that must be retained in the business for the protection of creditors.
____ 3. Preferred stockholders have a right to receive current and unpaid prior-year dividends before common stockholders receive any dividends.
____ 4. Creditors only have corporate assets to satisfy their claims.
____ 5. Responsible to stockholders for corporate activity.
____ 6. The amount assigned to each share of stock in the corporate charter.
____ 7. Unit of ownership in a corporation.
____ 8. Enables stockholders to maintain their same percentage ownership when new shares are issued.
____ 9. Corporation's own stock that has been reacquired by the corporation but not retired.
____ 10. Total amount paid-in on capital stock.

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Definitions:

Profit And Loss Ratio

An agreed upon ratio used to divide earnings or losses of a partnership.

Salary Allowances

Portions of an individual's salary that are non-taxed, typically for specific purposes like travel or housing.

Interest Allowances

Specific amounts deducted or allowed to accommodate interest on loans or advances, often related to banking or finance terms.

Partners' Equity

The owners' claim on the business assets in a partnership, which equals the net worth of the business divided among its partners.