defCh12 - KEY TERMS INTRODUCED OR EMPHASIZED IN CHAPTER 12...

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KEY TERMS INTRODUCED OR EMPHASIZED IN CHAPTER 12 basic earnings per share Net income applicable to the common stock divided by weightedaverage number of common shares outstanding during the year. cash dividend A distribution of cash by a corporation to its stockholders. comprehensive income Net income plus or minus certain changes in financial position that are recorded as direct adjustments to stockholders’ equity (for example, changes in the value of availableforsale investments) rather than as elements in the determination of net income. date of record The date on which a person must be listed as a shareholder to be eligible to receive a dividend. Follows the date of declaration of a dividend by two or three weeks. diluted earnings per share Earnings per share computed under the assumption that all convertible securities had been converted into additional common shares at the beginning of the current year. The purpose of this pro forma computation is to warn common stockholders of the risk that future earnings per share might be reduced by the conversion
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defCh12 - KEY TERMS INTRODUCED OR EMPHASIZED IN CHAPTER 12...

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