Outstanding stock means the number of shares of issued stock that are being held by stockholders.
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In liquidation, the sale of noncash assets for cash is called realization. Any difference between book value and the cash proceeds is called the gain or loss on realization.
- Overhead controllable variance
Overhead controllable variance is the difference between normal capacity hours and standard hours allowed times the fixed overhead rate.
- Equity method
Equity method is an accounting method in which the investment is common stock is initially recorded at cost, and the investment account is then adjusted...
- The Sarbanes-Oxley Act (SOX)
Sarbanes-Oxley Act is the regulations passed by Congrees in 2002 to try to reduce unethical corporate behavior. SOX imposes more responsibilities on corporate executives...
- Par value stock
Par value stock is capital stock to which the charter has assigned a value per share.
- Operating activities
Operating activities refer to cash flow activities that include the cash effects of transactions that create revenues and expenses and thus enter into the determination of net income.
- Trial balance
A trial balance is a list of accounts and their balances at a given time. Customarily, companies prepare a trial balance at the end of an accounting period.