AA chapter 9 vocabulary

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Automated Accounting : 

Automated Accounting Chapter 9 vocabulary

corporation: 

corporation An organization that has many of the legal rights of an individual but is owned by many people

Shares of stock : 

Shares of stock Units that represent the ownership of a corporation

Capital stock: 

Capital stock The total shares of ownership in a corporation

shareholders: 

shareholders Owners of stock

Board of directors: 

Board of directors A group elected by shareholders to manage a corporation

dividends: 

dividends Earnings distributed to shareholders

Retained earnings: 

Retained earnings Earnings not yet distributed to shareholders

Declaring a dividend: 

Declaring a dividend The decision by the board of directors to distribute earnings to the shareholders

Corporate income tax: 

Corporate income tax The tax that corporations are required to pay on actual earnings