Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses and are included as other comprehensive income and as seperate components of stockholders' equity ar

Q: Appropriation of retained earnings is necessary when the corporation reacquires its own share…

A: Acquisition of own share capital means purchase of corporate's own shares from the investors either…

Q: When an entity issues a financial instrument, it has to determine its classification either as debt…

A: The financial instrument is a contractual agreement of cash inflows and inflows. If it is not right…

Q: Dividends paid to a shareholder by a corporation should be reported on which of the following forms?…

A: form 1099 DIV  it is used to report the amount of ordinary dividend received. 1099 R is for…

Q: 5. A gain or loss may arise from which of the following? a. The initial recognition of the debt and…

A: Following is the answer to the given question

Q: 5. A gain or loss may arise from which of the following? a. The initial recognition of the debt and…

A: Liabilities are the obligation of the business towards third parties, or two internal employees, or…

Q: Retained earnings must be appropriated if there are treasury shares due to: A. contractual…

A: Appropriation of retained earnings is created by the company for a specific purpose voluntarily. It…

Q: Which of the following characteristics of a corporation limits a stockholders losses to the amount…

A: The stockholders will share loss of corporation.

Q: The liability of stockholders is normally limited to their investments in the corporation true…

A: The stockholders are considered as the owner of the corporation and the liability is limited to…

Q: All of the following terms can be used for a corporation to describe the difference between assets…

A: The balance sheet represents the financial position of the business with assets, liabilities and…

Q: Distinguish between paid-in capital and retained earningsof a corporation. Why is such a distinction…

A: Paid-in capital and retained earnings are the two main categories of stockholders' equity.

Q: mount of dividends that a corporation may declare? a. Cash flow test b. Book value test c.…

A: The right answer is d. Income to expense ratio test

Q: An unrealized holding gain or loss on a company’s equity investment at fair value through other…

A: Solution: Unrealized holding gain or loss on a company’s equity investment is just the virtual…

Q: How does the audit of owners’ equity for a closely held corporationdiffer from that for a publicly…

A: Audit of owners equity for a closely held corporation is different from that of publicly held…

Q: Interest revenue on bonds is reported as Group of answer choices an addition to the investment in…

A: Interest revenue on bonds is non operating revenue. So it is not operating income.

Q: Please concisely explain how the excess investment cost over book value is allocated. When is the…

A: 1. The excess cost of investment over book value can be allocated through the process of…

Q: In auditing a company's Shareholders' Equity, the proceeds from the sale of donated capital should…

A: Shareholders’ Equity shows how much the owner has invested in the business.

Q: One of the primary reasons for investing in debt securities includes a. Deducting interest payments…

A: One of the primary reasons for investing in debt securities includes Earning interest revenue.…

Q: Unrealized holding gain/loss which are taken to profit or loss are from securities that are…

A: Answer:-  Unrealized gain meaning:- A notional profit that exists on paper as a consequence of an…

Q: Which of the following are included in the total legal capital of a corporation assuming the…

A: Solution: Legal capital means only par/stated value of common stock or preferred stock issued.

Q: True (t) or False (f) _____ Bond interest paid by a corporation is an expense, whereas dividends…

A: Bonds are the certificates of loan taken by a corporation. It is typically secured in nature. The…

Q: what are major categories of debt and stock for a corporation.

A: Several businesses and people employ debt to finance major purchases that they would not be able to…

Q: How does the deductibility of interest and dividends by the paying corporation affect thechoice of…

A: A way to finance the capital requirement by the category of ownership in a company that has the last…

Q: Which characteristic of a corporation limits a stockholder's loss to the amount of his or her…

A: One of the type of legal structure of business operation that declares the business as a separate,…

Q: financial legislation and statutory requirements relating to taxable transactions and reporting…

A: Annual financial statements ought to be organized with the aid of using all entities besides small…

Q: The par value of common stock represents a. the estimated fair value of the stock when it was…

A: The correct answer is Option (a).

Q: In a corporate setting, the “shares of stock” represent --- Ownership of the corporation over its…

A: Corporation is a legal form of entity in which shareholders purchase shares and control the…

Q: against the related share premium b. Charged to an expense account c. Written off directly against…

A: (a) Charged against the related share premium

Q: Interest on debt incurred to acquire shares in a public corporation is only deductible if the shares…

A: If the money is borrowed to purchase shares, the interest expenses will generally be deductible if…

Q: Which of the following statements about the characteristics of debt and equity is true? a. All of…

A: Introduction:- Equity:- Equity means company collection of funds in the form of shares. equity…

Q: Which of the following must be included on the face of the statement of financial position?…

A: According to IAS 1.54, following items to be shown on the face of financial position: Investment…

Q: share capital, subscription of shares, and treasury shares

A: The company issue share capital to fulfil its capital requirement. When the public pays the…

Q: Which activities changes equity but does not affect a corporation's assets and liabilities?

A: Changes in equity: The amount of equity changes due to increase or decrease in the business…

Q: In the absence of evidence to the contrary, all the retained earnings of an entity can be declared…

A: Appropriated retained earnings are defined as that part of retained earnings that have been set…

Q: Unrealized holding gains and losses for trading securities are: a) Reported as a separate com ponent…

A: A security is a financial instrument, generally any financial asset that can be traded.…

Q: Treasury shares are shares heid as an investment by the treasurer of the corporation. shares held as…

A: Shares are the units of stock issued by a company to the general public in order to raise money from…

Q: What role does a corporation audited financial statements Play in determining it's taxable income?

A: Whatever financial statement that has already been audited by a certified public accountant (CPA) is…

Q: It is that part of the subscribed share capital which has been paid to the corporation    a.…

A: Solution: "Paid-up share capital" is that part of the subscribed share capital which has been paid…

Q: The authorized stock of a corporation a. must be recorded in a journal entry in the accounting…

A: Corporation is a legal entity separate from its members. It can issue shares to the general public…

Q: In a consolidated statement of financial position, the non-controlling interest is shown: Group of…

A: Statement of financial position is one of the financial statement of the business, which shows all…

Q: A company acquires a rather large investment in another corporation. What criteria determine whether…

A: Equity method: Equity method is the accounting method used for accounting equity investments which…

Q: 2. represent partial ownership in the corporations that issue them. retained earnings O capital…

A: Companies fulfill the needs of financing from various sources of financing such as equity and debt.…

Q: Equity securities acquired by a corporation which are accounted for by recognizing unrealized…

A: When some investments are made in some other company or corporation, then it depends on the quantum…

Q: Why do certain corporations disclose non-GAAP financial measures?

A: This question explains about corporations disclose non-GAAP financial measures

Q: which characteristics of a corporation limits a stockholder's loss  to the amount of his or her…

A: Business organisation can take many forms like Sole Proprietorship, Partnership or Corporation.…