Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the correct term by placing the letter designating the best term in the space provided by the phrase.
Terms:
A. Appropriation of retained earnings
B. Cost method
C. Cumulative
D. Price-earnings ratio
E. Limited liability company
F. Accumulated other comprehensive income
G. Retained earnings
H. Return on shareholders' equity
I. Reverse stock split
J. Share issue cost
1. ____ Designed to increase the market value of stock.
2. ____ Reduces the net proceeds from selling shares.
3. ____ A feature of most preferred stock.
4. ____ May be reduced when net income increases.
5. ____ May be reduced when shares are retired.