(See related pages)
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| Basic earnings per share | Calculated with the formula: (Net income 2 Preferred dividends) 4 Weighted-average common shares. (See page(s) 825) |
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| Cancelling of shares | See retirement of shares. (See page(s) 821) |
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| Changes in accounting estimates | Corrections to previous estimates or predictions about future events and outcomes, such as salvage values and the useful lives of operating assets; the changes are accounted for in the current and future periods. (See page(s) 832) |
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| Continuing operations | That section of an income statement that shows the revenues, expenses, and income generated by the company's day-to-day operating activities. (See page(s) 814) |
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| Discontinued operations | When a company with operations in different segments sells a segment, the sold segment is known as a discontinued operation. (See page(s) 815) |
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| Earnings per share | The amount of income earned by each share of a company's outstanding common shares; commonly abbreviated as EPS. (See page(s) 825) |
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| EPS | See earnings per share. (See page(s) 825) |
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| Extraordinary gain or loss | A gain or loss that is reported separately from continuing operations because it is not expected to occur frequently over several years, does not typify the normal business activities of the entity, and does not depend primarily on decisions or determinations by management or owners. Gains and losses that occur infrequently are not extraordinary. (See page(s) 816) |
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| Extraordinary item | See extraordinary gain or loss. (See page(s) 816) |
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| Infrequent gain or loss | A gain or loss that is not expected to occur again, given the operating environment of the business. (See page(s) 816) |
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| Net of tax | An amount reported net of tax means the income tax expense (benefit) has already been subtracted. (See page(s) 816) |
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| Restrictions | Legal or contractual limitations that cause a portion of the retained earnings balance not to be available for dividends or the repurchase of shares. No journal entry is required but note disclosure is necessary. (See page(s) 831) |
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| Retirement of shares | Occurs when a corporation repurchases and cancels its own shares. (See page(s) 821) |
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| Reverse share split | An act by a corporation to call in its shares and replace each share with less than one new share; reverse splits are opposite of share splits as they increase both the market value per share and the issued value per share. (See page(s) 821) |
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| Segment of a business | A component of a company's operations that serves a particular line of business or class of customers and that has assets, activities, and financial results of operations that can be distinguished from other parts of the business. (See page(s) 815) |
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| Share dividend | A corporation's distribution of its own shares to its shareholders without receiving any payment in return. Also called a stock dividend. (See page(s) 817) |
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| Share split | An act by a corporation to call in its shares and replace each share with more than one new share; a share split will decrease the market value per share and also the book value per share. (See page(s) 820) |
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| Treasury shares | Shares that were reacquired and are still held by the issuing corporation. (See page(s) 836) |
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| Unusual gain or loss | A gain or loss that is abnormal or otherwise unrelated to the ordinary activities and environment of the business. (See page(s) 816) |