CONTABILIDAD FINANCIERA III

ACTIVITY #5

VOCABULARY ABOUT STOCKHOLDERS' EQUITY

Match the concepts with their definitions. Look at the example in blue:

a) Profit (C) Who owns shares in a company.

b) Contributions (a) Incomes less costs less expenses and income tax.

c) Shareholders (G) Amount of profits, from previous years, retained by the

company to be reinvested.

d) Dividends (B) Equity instrument issued by an entity.

e) Shareholding (E) Legal right to the assets of a company.

f) Reserves (J) Value invested by a partner in the company that he/she

constitutes.

g) Accumulated utilities (H) It is a contract that gives rise to a financial asset in one
company and a financial liability or equity instrument in another.

h) Financial instruments (F) Part of the profit destined to legal, occasional or statutory
requirements.

i) Stockholders’ equity (I) Reminders of assets less liabilities of an entity.

j) Shares (K) When an entity issues shares for a value greater than their
nominal cost.

k) Equity surplus (D) Part of the profit that is decided to be distributed among the
partners.