Question

Select the correct term that matches with its definition/clue

1. Shares with certain preferences or rights, including priority claim on dividends
2. Process of revising previously issued financial statements to reflect error correction.
3. A capital structure that has no outstanding securities that could potentially dilute earnings per share.
4. Amount of stock that can be legally issued.
5. An adjustment that is an addition to or reduction in beginning retained earnings due to correction of errors.
6. Securities where conversion or exercise of potential common shares would be to increase, rather than decrease, EPS.
7. A method used for convertible debt in diluted EPS calculation.
8. A right to preferred stock dividends that add up each year if not paid.
9. accounting approach that revises prior period financial statements when presented for comparative purposes.
10. EPS available to common shareholders that incorporates the dilutive effect of all potential common shares.
11. This change involves a revision when new information comes to light (e.g., Depreciation, Bad Debts, etc.).
12. First day or date shares are traded without the right to receive declared dividends.
13. Another word for accounting mistakes.
14. Employee plans that allow them to purchase employer stock at a discounted price.
15. Stock issued but later repurchased and held by a corporation.

accounting errors
antidilutive securities
authorized shares
change in estimate
cumulative dividend preference
diluted EPS
employee share purchase plan
ex-dividend date
if-converted method
preferred stock
prior period adjustment
restatement
retrospective treatment
simple capital structure
treasury stock

Answer 1

The terms matched with definitions related to finance and accounting include preferred stock, restatement, simple capital structure, and others that are important for understanding corporate finance and stock market mechanisms.

Step-by-step explanation:

The selected terms with their corresponding definitions are as follows:

1. Preferred stock: Shares with certain preferences or rights, including priority claim on dividends.
2. Restatement: Process of revising previously issued financial statements to reflect error correction.
3. Simple capital structure: A capital structure that has no outstanding securities that could potentially dilute earnings per share.
4. Authorized shares: Amount of stock that can be legally issued.
5. Prior period adjustment: An adjustment that is an addition to or reduction in beginning retained earnings due to correction of errors.
6. Antidilutive securities: Securities where conversion or exercise of potential common shares would be to increase, rather than decrease, EPS.
7. If-converted method: A method used for convertible debt in diluted EPS calculation.
8. Cumulative dividend preference: A right to preferred stock dividends that add up each year if not paid.
9. Retrospective treatment: Accounting approach that revises prior period financial statements when presented for comparative purposes.
10. Diluted EPS: EPS available to common shareholders that incorporates the dilutive effect of all potential common shares.
11. Change in estimate: This change involves a revision when new information comes to light, such as Depreciation, Bad Debts, etc.
12. Ex-dividend date: First day or date shares are traded without the right to receive declared dividends.
13. Accounting errors: Another word for accounting mistakes.
14. Employee share purchase plan: Employee plans that allow them to purchase employer stock at a discounted price.
15. Treasury stock: Stock issued but later repurchased and held by a corporation.