Match Each Definition with the Correct Term Below

question 236

Multiple Choice

Match each definition with the correct term below.
-Statement of stockholders' equity

• A)The maximum number of shares of stock that a corporation's state charter allows it to issue.
• B)A distribution among stockholders of the assets that a corporation's earnings have generated.
• C)A summary of the changes in the components of the stockholders' equity section of the balance sheet.
• D)A proportional distribution of shares among a corporation's shareholders.
• E)Stock that does not have a par value.
• F)Represents a company's total assets minus its liabilities.
• G)No-par stock that has a value assigned to it either by the board of directors or the state.
• H)A dividend declared by a company that is in excess of its retained earnings.
• I)The shares of stock that a corporation sells or otherwise transfers to stockholders.
• J)When a corporation increases the number of shares of stock issued and outstanding and reduces the par or stated value proportionally.

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Definitions:

Face Value

The nominal or dollar value stated on a financial instrument, such as a bond or stock certificate, representing its worth if redeemed at maturity.