Match the Following Terms to Their Correct Definition

question 172

Multiple Choice

Match the following terms to their correct definition.
-Another term for articles of incorporation

• A)Articles of incorporation
• B)Common stock
• C)Contributed capital
• D)Corporate charter
• E)Current dividend preference
• F)Date of record
• G)Declaration date
• H)Dividends in arrears
• I)Equity
• J)Exercise (strike) price
• K)Liquidating dividend
• L)No-par stock
• M)Payment date
• N)Preferred stock
• O)Prior period adjustment
• P)Return on common equity

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Definitions:

Nature Of Gain

Refers to the type of profit obtained from various transactions, such as the sale of property, which affects how the gain is taxed.

Bankrupt

The legal status of a person or organization that cannot repay the debts it owes to creditors, typically resulting in court intervention and the distribution of assets to creditors.

Worthless Stock

Shares that have lost all market value, often due to the company's bankruptcy, possibly eligible for tax deduction as a capital loss.

Nature Of Loss

A classification that determines how a loss is treated for tax purposes, often related to whether it's from a capital asset, ordinary income, or other sources.