Match the Following Terms to Their Correct Definition

question 17

Multiple Choice

Match the following terms to their correct definition.
-Shareholders holding the shares on this date are the ones who receive any dividends that have been declared.

• 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:

Initial Value Method

An accounting approach that records investments at their original purchase cost, without adjusting for changes in market value.

Partial Equity Method

An accounting technique used for investments where the investor has significant influence but does not fully control the investee, recognizing income proportionate to the level of ownership.

Equity Method

An accounting technique used to record investments in which the investor has significant influence but no control over the investee, recognizing the investor's share of the investee's profits and losses.

Partial Equity Method

An accounting approach used when an investing entity owns a significant but not controlling stake in another company, recognizing income based on the proportionate share of the investee's earnings.