Match Each Definition with the Correct Term Below

question 135

Multiple Choice

Match each definition with the correct term below.
-Stock split

• 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:

Markup Percent

The rate at which the cost price of goods is marked up to determine their selling price.

Selling Price

The amount for which something is sold, determined by factors such as cost, demand, and competition.

Cost

The amount of money required to produce, purchase, or maintain a product or service.

Markup Percent

The surcharge applied to the acquisition cost of products for covering overhead and making a profit.