State the Appropriate Accounting Term for Each of the Definitions

question 106

Essay

State the appropriate accounting term for each of the definitions given below.
a)A written authority granted by individual shareholders to others to cast the shareholders' votes.
b)The right to acquire a proportional amount of any new issues of common stock.
c)The aggregate number of shares that can be issued.
d)A characteristic of preferred stock that requires that the undeclared dividends accumulate and must be paid in the future before common dividends are paid.
e)A measure of the preference to receive assets in the event of corporate liquidation.
f)A characteristic of preferred stock that gives the issuer the right to buy the preferred stock from the owner at a fixed price.
g)A characteristic of bonds or preferred stock that gives the holder the right to exchange the security for common stock.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services.

Allowances For Spoilage

Financial adjustments made for the anticipated loss of goods due to spoilage during production or storage.

Inefficiency

The lack of ability or effectiveness to transform inputs into outputs in a cost-effective manner, often resulting in wasted resources.

Practical Standard

An achievable standard that takes into consideration normal working conditions and expected operational inefficiencies.