Match each of the following terms with the correct definition: a. additional paid-in capital b. issued and outstanding c. retained earnings d. treasury stock e. authorized share capital f. par value Correct Definitions: A. The price at which each share is recorded in the company’s books B. Held by investors C. Cumulative amount of profits that have been plowed back D. The difference between the amount of cash raised by an equity issue and the par value of the issue E. The maximum number of shares that can be issued without shareholder approval F. The amount that the company has spent buying back stock that it has not subsequently resold

Q: Indicate the effects of each of the following transactions on Assets, Liabilities, Share Capital and…

A: Each financial transaction in a business affects at least two accounts so that the accounting…

Q: If Treasury Stock is purchased, the Stockholder's Equity Section of the Balance Sheet will (select…

A: Treasury stock is a previously outstanding stock that the issuing corporation buys back from…

Q: Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The…

A: A. A stock split: No change in total equity   B. Recording Revenue: Increase in total equity   C.…

Q: Cash dividends are paid based on the number of shares: a. outstanding. b. authorized. c. issued

A: As per IAS 33 Earnings per share standard  Earnings per share = Net income available to ordinary…

Q: What is the accounting treatment of the direct issue costs of shares of stocks? Debit to the…

A:

Q: When common stock is issued at an amount greater than par value, the difference between the par…

A: When common stock is issued for more than its par value, the difference between par value and…

Q: Which one or more of the following would you not include within the heading Equity and Reserves in a…

A: Equity and reserves that are shown under statement of financial position means all amount…

Q: Under the equity method, the receipt of cash dividends on an investment in common stock of Vallerio…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: If stock is issued above par, what other equity account can be credited?  Choices:  common stock…

A: Paid-in capital is the sum of capital "paid in" by speculators amid common or preferred stock…

Q: Indicate how each of the following accounts should be classified in the stockholders’ equity…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Undeclared dividends (in arrears) to cumulative preferred stockholders must be filed as: a. as an…

A: The dividend is considered a part of the distributable profit distributed by the company to its…

Q: The entry to record the issuance of common stock at a price above its par value includes a A) an…

A: Company means a form of business where the share holder invest money in business in form of shares…

Q: The amount attributable to every share of ordinary share capital outstanding during the period.  a.…

A: The company can raise funds by using different methods. Some of them are, by way of issuing common…

Q: Match each of the following terms with the correct definition: a. additional paid-in capital b.…

A: Share capital includes the parts of the capital of the entity which are issued to the shareholders.…

Q: Book value per common share is computed by: O Multiplying the number of common shares outstanding…

A: Common stock indicates the ownership of the company held by investors called shareholders.

Q: It represents the cumulative balance of periodic earnings, dividend distributions, prior period…

A: Retained earnings is defined as portion of profits which remains available in the company after…

Q: share dividends distributable account balance

A: Share dividends distributable account balance is the amount of share dividends declared and still…

Q: The value of a share of stock can be found from which of the following equations? a. (Value of the…

A: Equity value is the value of a company available to shareholders

Q: The cash ratio Total asset turnover The profitability of shareholders' equity The ratio of total…

A: If an enterprise issues new common shares to increase its cash and cash equivalents, then the…

Q: Treasury stock should be reported as

A: Option b is wrong because treasury stocks are not fixed assets. Option c is wrong because treasury…

Q: when shares are issued at a premium the value of the share premium should be :

A: Answer:   Option c.

Q: The common stock received from the new company is recorded at ...... Select one: a. Average value…

A: Solution- The common stock received from the new company is recorded at Market Value.

Q: Indicate the effect of each of the following transactions on total  equity by selecting the…

A: Total equity is the amount that represents the shareholding of the business owners. It includes…

Q: Required: Prepare a working paper (use template) and compute for (a) total shareholders' equity and…

A: Share capital transactions for Fleurage Inc during the year 2021 are given to us based on which the…

Q: he primary purpose of the Balance Sheet is to reflect: a. Firm’s potential for growth in stock…

A: Solution: The primary purpose of the Balance Sheet is to reflect " Firm’s resources and how they…

Q: The total amount of cash and other assets received by a corporation from the stockholders inexchange…

A: Shares are an important source of finance that is being used by most of the companies. Shares can be…

Q: The entry to record common stock issued at its par value includes a:    A. credit to Cash  B. debit…

A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…

Q: The receipt of dividends from long-term investments in stock in classified as a canh infow from…

A: The cash flow statement keeps the record of cash inflow or outflow from the business under various…

Q: Of the following metrics, which is most likely used in present value calculation of equity shares?…

A: The cash which is generating by the company for the purpose of carrying its' operations of trading…

Q: If common stock is issued at a price above par value, the transaction would be recorded as a. debit…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: If common stock is issued for an amount greater than par value, the excess goes to what account? Oa.…

A: The common stock issued is to be presented  in balance sheet  under liabilities  section. It is to…

Q: Cash dividends are paid based on the number of shares to. outstanding. b. issued (issued). C.…

A: Dividends is paid to the share holders for the money which is being invested in the company as share…

Q: alculation of which if the following metrics require knowledge of the company’s share price? Choose…

A: Dividend yield The dividend yield is the ratio of the current share price of a company and the…

Q: 1. The cost method of accounting for stock investments is used when the company acquires a. Greater…

A: The different accounting methods are used when the company acquires its own assets are: Cost method,…

Q: c. How much Resulting APIC is to be charged or debited for the stock issuance cost d. How much…

A: According to IFRS 3 Business Combination, the cost incurred for issuing stock shall not be treated…

Q: Match each of the following terms with the correct definition: additional paid-in capital issued…

A: According to the rule, we will answer the first three subparts, for the remaining subparts, kindly…

Q: The stockholders' equity section of the balance sheet typically includes the line items of retained…

A: Stockholders equity section of balance sheet is the section which shows all amount pertaining of…

Q: Indicate whether each of the following transactions increases (+), decreases (−), or has no effect…

A: Stock: It can be defined as a security that represents the ownership interest of the stockholder…

Q: Dividends in arrears on preference shares are reported in the financial statements as a (an) a.…

A: dividend are paid by the company to its shareholders.both the shareholder whether it is common stock…

Q: Treasury shares are most often reported as: A) A reduction of total shareholders' equity. B) A…

A: Treasury stock are the stocks which are bought back by the company , thus this reacquired stocks…

Q: What terminology best describes the EPS (earnings per share) formula below?  Net income available…

A: Earnings per share (EPS) represent the earnings earned for each share of the company. As per the…

Q: Indicate how each of the following accounts should be classified in the equity section.(a) Share…

A: Equity: The term equity is also known as net assets. It is the residual interest of the owner in the…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.