| Appropriated retained earnings | Retained earnings separately reported to inform stockholders of funding needs.
|
 |
|
|
| Basic earnings per share | Net income less any preferred dividends and then divided by weighted-average common shares outstanding.
|
|
|
|
| Changes in accounting estimates | Change in an accounting estimate that results from new information, subsequent developments, or improved judgment that impacts current and future periods.
|
|
|
|
| Complex capital structure | Capital structure that includes outstanding rights or options to purchase common stock, or securities that are convertible into common stock.
|
|
|
|
| Cumulative preferred stock | Preferred stock on which undeclared dividends accumulate until paid; common stockholders cannot receive dividends until cumulative dividends are paid.
|
|
|
|
| Date of declaration | Date the directors vote to pay a dividend.
|
|
|
|
| Date of payment | Date the corporation makes the dividend payment.
|
|
|
|
| Date of record | Date directors specify for identifying stockholders to receive dividends.
|
|
|
|
| Diluted earnings per share | Earnings per share calculation that requires dilutive securities be added to the denominator of the basic EPS calculation.
|
|
|
|
| Dilutive securities | Securities having the potential to increase common shares outstanding; examples are options, rights, convertible bonds, and convertible preferred stock.
|
|
|
|
| Dividend in arrears | Unpaid dividend on cumulative preferred stock; must be paid before any regular dividends on preferred stock and before any dividends on common stock.
|
|
|
|
| Dividend yield | Ratio of the annual amount of cash dividends distributed to common shareholders relative to the common stock's market value (price).
|
|
|
|
| Earnings per share (EPS) | Amount of income earned by each share of a company's outstanding common stock; also called net income per share.
|
|
|
|
| Estimated tax liability | The amount a corporation expects to pay in income taxes for a specific year.
|
|
|
|
| Large stock dividend | Stock dividend that is more than 25% of the previously outstanding shares.
|
|
|
|
| Noncumulative preferred stock | Preferred stock on which the right to receive dividends is lost for any period when dividends are not declared.
|
|
|
|
| Nonparticipating preferred stock | Preferred stock on which dividends are limited to a maximum amount each year.
|
|
|
|
| Participating preferred stock | Preferred stock that shares with common stockholders any dividends paid in excess of the percent stated on preferred stock.
|
|
|
|
| Payout ratio | Cash dividends declared on common stock divided by net income.
|
|
|
|
| Price-earnings (PE) ratio | Ratio of a company's current market value per share to its earnings per share; also called price-to-earnings.
|
|
|
|
| Prior period adjustment | Correction of an error in a prior year that is reported in the statement of retained earnings (or statement of stockholders' equity) net of any income tax effects.
|
|
|
|
| Restricted retained earnings | Retained earnings not available for dividends because of legal or contractual limitations.
|
|
|
|
| Retained earnings deficit | Debit (abnormal) balance in Retained Earnings; occurs when cumulative losses and dividends exceed cumulative income; also called accumulated deficit.
|
|
|
|
| Simple capital structure | Capital structure that consists of only common stock and nonconvertible preferred stock; consists of no dilutive securities.
|
|
|
|
| Small stock dividend | Stock dividend that is 25% or less of a corporation's previously outstanding shares.
|
|
|
|
| Statement of retained earnings | Report of changes in retained earnings over a period; adjusted for increases (net income), for decreases (dividends and net loss), and for any prior period adjustment.
|
|
|
|
| Statement of stockholders' equity | Financial statement that lists the beginning and ending balances of each major equity account and describes all changes in those accounts.
|
|
|
|
| Stock dividend | Corporation's distribution of its own stock to its stockholders without the receipt of any payment.
|
|
|
|
| Stock split | Occurs when a corporation calls in its stock and replaces each share with more than one new share; decreases both the market value per share and any par or stated value per share.
|
|
|
|
| Taxable income | A corporation's total revenues under tax laws minus its total expenses under tax laws.
|
|
|
|
| Treasury stock | Corporation's own stock that it reacquired and still holds.
|