Outstanding stock means the number of shares of issued stock that are being held by stockholders.
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- Cumulative dividend
Cumulative dividend is a feature of preferred stock entitling the stockholder to receive current and unpaid prior-year dividends before common stockholders receive dividends.
An account is an accounting record of increases and decreases in a specific asset, liability, or owner’s equity item. In its simplest form, an account consists of ...
- Indirect materials
Indirect materials are those raw materials which cannot be easily associated with the finished product.
Manufacturing consists of activities and process that convert raw materials into finished goods. Contrast this type of operation with merchandising...
- Purchase discount
Purchase discount means a cash discount claimed by a buyer for prompt payment of a balance due. The credit terms of a purchase on account may permit the buyer to claim...
- Earning power
Earning power means the normal level of income to be obtained in the future. Earning power differs from actual net income by the amount of irregular revenues...
Under the percentage-of-receivables basis, management estimates what percentage of receivables will result in losses from uncollectible accounts.