In an audit of stockholders’ equity which among the following is a correct application of generally accepted accounting principles? a. Retired treasury shares are deducted from the shareholders’ equity of the company 2. Subscriptions Receivable are deducted from the share capital account of the company except when they are collectible within one year. 3. Share Warrants Outstanding are included in the share capital account of the company. 4. All share capital transactions are recorded at their respective par values regardless of the prevailing market value of each share of stock.
In an audit of stockholders’ equity which among the following is a correct application of generally accepted accounting principles? a. Retired treasury shares are deducted from the shareholders’ equity of the company 2. Subscriptions Receivable are deducted from the share capital account of the company except when they are collectible within one year. 3. Share Warrants Outstanding are included in the share capital account of the company. 4. All share capital transactions are recorded at their respective par values regardless of the prevailing market value of each share of stock.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.4E
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In an audit of
a. Retired treasury shares are deducted from the shareholders’ equity of the company
2. Subscriptions Receivable are deducted from the share capital account of the company except when they are collectible within one year.
3. Share Warrants Outstanding are included in the share capital account of the company.
4. All share capital transactions are recorded at their respective par values regardless of the prevailing market value of each share of stock.
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