Professional Documents
Culture Documents
Accountin 2
Accountin 2
Summery of Chapter 12
Summry of Chapter 13
1- Authorized stock The amount of stock that a corporation
is authorized to sell as indicated in its charter.
2- Charter A document that is issued by the state to set
forth important terms and features regarding the
creation of a corporation.
3- Corporation A business organized as a legal entity separate
and distinct from its owners under state corporation law.
4- Organization costs Costs incurred in the formation of a
corporation.
5- Outstanding stock Capital stock that has been issued
and is being held by stockholders.
6- Paid-in capital Total amount of cash and other assets
paid in to the corporation by stockholders in exchange
for capital stock.
7- Preferred stock Capital stock that has some preferences
over common stock.
8- Treasury stock A corporation’s own stock that has been
issued and subsequently reacquired from shareholders
by the corporation but not retired.
9- Stated value The amount per share assigned by the
board of directors to no-par value stock.
10- Retained earnings Net income that the corporation
retains for future use.
11- Privately held corporation A corporation that has only
a few stockholders and whose stock is not available for
sale to the general public.