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

Calculate net operating income under both absorption and variable costing methods.

Compute unit product costs under absorption and variable costing.

Prepare income statements using both absorption and variable costing.

Reconcile absorption and variable costing net incomes.

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Definitions:

Opportunity Loss

The loss of potential gain from other alternatives when one alternative is chosen.

Average Payoff

The mean or expected outcome that results from all possible outcomes of a certain situation or game, weighted by their probabilities.

ARM

Acronym for Advanced RISC Machines; a family of reduced instruction set computing (RISC) architectures for computer processors.

Variance

A measure of the dispersion of a set of data points around their mean, indicating how much the data points differ from the average value.