Question

Match each of the following stockholders' equity concepts to the most appropriate term (a - h)a. authorized sharesb. issued sharesc. outstanding sharesd. par valuee. common stockf. preferred stockg. Paid-In Capital in Excess of Par1. The account used to record the difference when issue price exceeds par value of stock2. The dollar amount assigned to each share of stock3. The number of shares currently held by stockholders4. A class of stock having first rights to dividends of a corporation5. The maximum number of shares a company can issue to shareholders6. The number of shares sold to stockholders7. A class of stock that provides no preference rights to shareholders

Answer 1

Answer:

A. Authorized shares - The maximum number of shares a company can issue to shareholders

B. Issued shares - The number of shares currently held by stockholders.

C. Outstanding shares - The number of shares sold to stockholders

D. Par value - The dollar amount assigned to each share of stock

E. Common stock -  A class of stock that provides no preference rights to shareholders

F. Preferred stock -  A class of stock having first rights to dividends of a corporation

G. Paid-In Capital in Excess -  The account used to record the difference when issue price exceeds par value of stock