Used to calculate the earnings per share of common stock: Earnings available for common stock divided by the weighted-average number of shares of common stock outstanding. The weighted-average number of shares is needed...
Used to calculate the earnings per share of common stock: Earnings available for common stock divided by the weighted-average number of shares of common stock outstanding. The weighted-average number of shares is needed...
The amount of free cash flow divided by the weighted average number of common shares of stock outstanding during the year.
This financial statistic is the net income of a corporation after income tax (less any preferred dividends) divided by the weighted average number of shares of common stock outstanding during the same period of time.
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
What is common stock outstanding? Author: Harold Averkamp, CPA, MBA Definition of Common Stock Outstanding Common stock outstanding is defined as the shares of common stock that have been issued minus any shares of...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
What is the earnings per share (EPS) ratio? Author: Harold Averkamp, CPA, MBA Definition of Earnings per Share The earnings per share ratio, or simply earnings per share, or EPS, is a corporation’s 1) net income (or...
The number of shares of stock that a corporation may issue. The amount is specified in the corporation’s articles of incorporation.
The issued shares of common stock minus the shares of treasury stock. The weighted average of the outstanding shares is used to compute the earnings per share.
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
What is treasury stock? Author: Harold Averkamp, CPA, MBA Definition of Treasury Stock Treasury stock is usually a corporation’s previously issued shares of common stock that have been purchased from the stockholders,...
What are the journal entries for a stock split? Author: Harold Averkamp, CPA, MBA Definition of a Stock Split A stock split usually increases the number of shares of a corporation’s common stock with the intention of...
What are the reasons for a stock dividend instead of a cash dividend? Author: Harold Averkamp, CPA, MBA Definition of a Stock Dividend A stock dividend is a dividend consisting of additional shares of stock. Assume that...
Our Explanation of Financial Ratios includes calculations and descriptions of 15 financial ratios. As you calculate the financial ratios you will also gain a deeper understanding of a company's operations and financial...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
Are dividend payments shown as an expense on the income statement? Author: Harold Averkamp, CPA, MBA Definition of Dividend Payments The cash dividends paid to stockholders are a distribution of the corporation’s...
Our Explanation of Financial Statements provides you with the highlights of each of the five external financial statements issued by U.S. corporations. Our insights will give you a good understanding of what the...
A weighted-average of the cost of a company’s debt, common stock, and preferred stock.
What is the book value per share of stock? Author: Harold Averkamp, CPA, MBA Definition of Book Value per Share of Stock The book value of a corporation is the amount of its stockholders’ equity. Assuming the...
What is a memorandum entry? Author: Harold Averkamp, CPA, MBA Definition of Memorandum Entry A memorandum entry is a short message entered into the general journal and also entered into a general ledger account. It is...
What is a stock split? Author: Harold Averkamp, CPA, MBA Definition of Stock Split A stock split usually refers to a corporation dividing its existing number of shares of common stock into a greater number of shares. For...
Used in the periodic inventory method to compute the value of inventory and the cost of goods sold. This average cost is based on the total cost of goods available for sale for the entire year (after all purchases for...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
Stockholders' Equity Quiz and Test | AccountingCoach Stockholders' Equity(Practice Quiz) Download PDF Author: Harold Averkamp, CPA, MBA For multiple-choice and true/false questions, simply press or click on what you...
What is the cost of capital? Author: Harold Averkamp, CPA, MBA Definition of Cost of Capital The cost of capital is the weighted-average, after-tax cost of a corporation’s long-term debt, preferred stock (if any), and...
What is the difference between equity financing and debt financing? Author: Harold Averkamp, CPA, MBA Definition of Equity Financing Equity financing involves increasing the owner’s equity of a sole proprietorship or...
What is common stock? Author: Harold Averkamp, CPA, MBA Definition of Common Stock Common stock refers to the shares of ownership interest in a U.S. corporation. The owners of the common stock are referred to as common...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
Our Explanation of Financial Ratios includes calculations and descriptions of 15 financial ratios. As you calculate the financial ratios you will also gain a deeper understanding of a company's operations and financial...
A dividend in the form of more shares of stock. A 5% stock dividend means that a stockholder holding 100 shares would receive 5 additional shares of stock. Since all shareholders receive additional shares, each...
What is cumulative preferred stock? Author: Harold Averkamp, CPA, MBA Definition of Cumulative Preferred Stock Cumulative preferred stock is a type of preferred stock for which any omitted dividends must be paid before...
A corporation’s total stockholders’ equity (excluding preferred stock) divided by the number of shares of common stock outstanding.
What is a dividend? Author: Harold Averkamp, CPA, MBA Definition of Dividend Generally, the term dividend refers to a cash dividend, which is distribution of a portion of a corporation’s earnings to its stockholders in...
One of the amounts used in determining the amount of interest to be capitalized when a company self-constructs certain long-term assets.
Our Explanation of Income Statement helps you learn the most important features of a corporation's income statement (also known as the statement of operations or profit and loss statement). We provide more understanding...
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