For what reasons might a company restrict a portion of its retained earnings?

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: A change in statement of changes in equity in a company may result to what

A: Answer: Statement of changes in equity in a company is the summary statement to represent the…

Q: Profits that have been subjected to IAET will be liable to dividend tax when they are eventually…

A: Tax is the charge which is charged on the taxable income earned by the corporation or business…

Q: A company's additions to retained earnings is determined by which  two items?

A: Retained earnings refer to the surplus amount that is left over after making payments of dividends…

Q: For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl…

A: Shareholder's equity: It is the amount of the money that can be returned to the shareholders and it…

Q: Which of the following represents an obligation of the company? Liability Asset Owners' Equity…

A: The obligation of a company is the company's responsibility that has to be paid.

Q: under what circumstances might a company choose not to pay dividends?

A: Dividend Payment and non-payment will be decided by the company based on the future opportunity of…

Q: retained earnings are not part of the stockholders claims on the company net assets true  false

A: Retained earning means amount of profit remain after all the adjustment of expense and adjustments.

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: Retained earnings refer to the portion of a corporation's profits that are paid out to shareholders.…

A: B.  false Retained earnings are not paid to shareholders.  Generally dividend paid to shareholders ,…

Q: How would you describe a change that a company makes from the equity method to the fair-value method…

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

Q: The accounting net income of a company are not necessarily the same amount as the net income for tax…

A: The accounting net income of a company are not necessarily the same amount aa the net income for tax…

Q: What are the similarities and differences between a limited company and a sole trader's statement of…

A: Organization- The organization is the process of identifying and gathering work to be done,…

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: Profits or losses are recorded in a share capital account. O TRUE O FALSE The main differences…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Are retained earnings apart of the companys net assets

A: Net assets of the company= Total Assets of the company minus its liabilities. Retained earnings is…

Q: Which of the following may not affect retained earnings or earned capital? O Correction of prior…

A: Profit and loss for the period and correction of prior period error may affect the retained…

Q: Profits that have been subjected to IAET will be liable to dividend tax when they are eventually…

A: Tax is the charge which is charged on the taxable income earned by the corporation or business…

Q: The accounting assumption or principle of is being violated if a company that is a party to major…

A: Solution: The accounting assumption or principal of Full disclosure is being violated if a company…

Q: When do the corporations also report their retained earnings?

A: When do the corporations also report their retained earnings?

Q: Profits or losses are recorded in a share capital account. O TRUE O FALSE The main differences…

A: Pay as you earn system or tax deduction at source in some countries are the advance tax payment…

Q: How does inflation affect the financial statements of a parent and subsidiary business?

A: Inflation is defined as the rise in price level in the economy, i.e. rise in the prices of goods and…

Q: Retained earnings is appropriated if the portion is not available for distribution to shareholders…

A: Retained earnings is attributable to the owners of the business. So, this will be part of…

Q: perating income.   Long-term capital gain.   Cost of goods sold.

A: The shareholder begins with their commencing capital contribution to the S corporation or the…

Q: Earnings and profits are conceptually similar to retained earnings.     A distribution from…

A: The dividend can be paid either from current earnings and profits or from the accumulated earnings…

Q: Which of the following is NOT a characteristic of common stock? O tock represents partial ownership…

A: Common stock forms part of the capital structure of the company. It provides funds for managing…

Q: Which of the following statements about post-acquisition earnings is incorrect? А. They are the…

A: Holding company A holding company refers to the company that holds and controls another company. The…

Q: Which of the following may not be an effect of VAT on the accounting records of a company?   i. The…

A: VAT refers to indirect tax imposed on the sale and purchase of goods and services.

Q: retained earnings are not part of the stockholders claims on the company net assets

A: Hi student Since there are no requirement mentioned, we assume that it is to be identified that…

Q: Which one or more of the following is a company obliged to disclose when preparing financial…

A: Disclosures in the Financial Statements of the company :          The purpose of the financial…

Q: if an item of accounting information is released by a corporation and there is no apparent change in…

A: If we take it as a view point from the capital market, and if we assume that the equity markets are…

Q: Under what assumptions market value of a company does not depend on its capital structure

A: One important concept in Modigliani and Miller theorem that market value does not depends on the…

Q: How are paid-in-capital and retained earnings: Similar? Different?

A: The answer is as fallows

Q: For fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl…

A: Securities held to maturity (HTM) are bought for ownership before they expire. For instance, the…

Q: Gem Company classifies a portion of its retained earnings as appropriated for loss contingencies.…

A: Retained earning is the earning accumulated over a period of time. It is used for various purposes…

Q: hich of the following may not be an effect of VAT on the accounting records of a company?   The…

A: VAT is the value added tax which is applied to all sales of services and imports, as well as to the…

Q: If common stockholders are the owners of the company, why do they have the last claim on assets and…

A: common shareholders are the owners of the company because they are the actual owners, shareholder…

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: If common stockholders are the owners of the company, why do they have the last claim on assets and…

A: Common shareholders spend their capital in the company and thereby become the company's owners. As…

Q: A company might restrict retained earnings, what does this indicate?

A: Retained earnings: Retained earnings are the portion of earnings kept by the business for the…

Q: If a company has trading securities, it will report unrealized changes in their value only when…

A: Trading Securities:- Trading securities are investments in debt or equity that management plans to…

Q: When do dividends become legal debt of the company?

A: Once the dividend is declared by the company, it has to pay dividend in certain deadlines. It…

Q: The balance in retained earnings is not affected by Choose net income. aluation of a company's…

A: Retained earnings is an accumulation of net income or loss over a period of time and it is…

Q: Is the tax expense of a firm in its financial statements same as the company tax rate times of a…

A: Tax expense is the total of all the taxes that a company is responsible to pay to the authorities.…

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.…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.