Select the Letter of the Term Each Statement Best Describes

question 171

Multiple Choice

Select the letter of the term each statement best describes.
-Allows the issuing firm to eliminate a class of stock by paying the stockholders a fixed amount.

• A)authorized shares
• B)issued shares
• C)outstanding shares
• D)par value
• E)additional paid-in capital
• F)retained earnings
• G)cumulative feature
• H)participating feature
• I)callable stock
• J)treasury stock
• K)retirement of stock
• L)dividend payout ratio
• M)stock dividend
• N)stock split
• O)market value per share
• P)convertible stock
• Q)book value per share

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Definitions:

Pre-tax Book Income

The income of a company before taxes are deducted, as reported in its financial statements.

Deferred Tax

Deferred tax refers to taxes that are accrued but not yet paid due to timing differences between the recognition of income or expenses for financial reporting and tax purposes.

Financial Reporting

The process by which a company discloses its financial performance to stakeholders, including investors and regulators, typically through financial statements.

Interfirm Comparisons

The analysis and evaluation of a company's performance or financial health in relation to its competitors or industry standards.