Preference share that is given a right to share with the ordinary share in dividends in excess of a stated dividend rate is said to be * a. cumulative b. participating c. non cumulative d. non participating

Preference share that is given a right to share with the ordinary share in dividends in excess of a stated dividend rate is said to be * a. cumulative b. participating c. non cumulative d. non participating

Name: Preference share that is given a right to share with the ordinary shar
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Description: Preference share that is given a right to share with the ordinary share in dividends in excess of a stated dividend rate is said to be * a. cumulative b. participating c. non cumulative d. non participating

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 2MC

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In computing basic earnings per share (EPS), the amount of preference dividends on noncumulative preference shares should be:A. deducted from net income whether declared or notB. deducted from net income only when declaredC. added to net income only when declaredD. ignored
In computing basic EPS, the amount of preference dividends onnoncumulative preference shares should be A. deducted from net income whether declared or notB. deducted from net income only when declaredC. added to net income only when declaredD. ignored
Compute for the total amount of dividend given in the individual assumptions allocated for ordinary shares. h. Preference share capital is cumulative and nonparticipating i. Preference share capital is cumulative and participating j. Preference share capital is cumulative and participating up to 8%
Mandatorily redeemable preferred stock (preference shares) is reported among liabilities and their dividends are reported in the income statement as interest expense using a. U.S. GAAP. b. IFRS. c. Both U.S. GAAP and IFRS. d. Neither U.S. GAAP nor IFRS.
Dividends in arrears on preference shares are reported in the financial statements as a (an) a. liabilityb. reduction from Retained Earningsc. reduction from Retained Earningsd. expense
When computing the basic earnings per share in a structure where there are cumulative preference shares, the net income to ordinary shares is equal to the actual net income of the company a. Add current dividend for preference shares whether declared or not b. Less current dividend for preference shares whether declared or not c. Less current dividend for preference shares only when declared d. Less current and previous dividend for preference shares declared or not e. Add current dividend for preference shares only when declared
The cost of dividend payable on redeemable preference shares should be included in______. Select one: a. in the statement of income after identifying profit after tax b. in the statement of income before identifying the profit before tax c. as a deduction in the statement of changes in equity d. in the statement of income as a deduction prior to identifying profit from operations
the total shareholders' equity after the declaration of hare capital dividend a. is greater than the total shareholders' equity before the declaration b. may be more than or less than the total shareholders' equity before the declaration depending on whether the share capital dividend declared is small or large c. is the same as the total shareholder's equity before the declaration d. a less than the total shareholders' equity before the declaration
Provide differences of Treasury Share with Ordinary Share or Preference Share. Give the accounting treatment for the following cases: Treasury Shares are sold below its cost Treasury Shares are sold above its cost Treasury Share retires (Cost < Par Value ) Treasury Shares retires (Cost > Par Value)
Dividends on Preference and Ordinary Shares Required: Calculate the amount of dividends received by preference and ordinary shareholders, respectively, under each of the following assumptions.
The total shareholders' equity after he declaration of hare capital dividend. a. may be more than or less than the total shareholders' equity before the declaration depending on whether the share capital dividend declared is small or large b. is less than the total shareholders' equity before the declaration c. is the same as the total shareholders' equity before the declaration d. is greater than the total shareholder's equity before the declaration
Redeemable preference shares will be shown under: a. Equity in the statement of financial position b. Non current liability in the statement of financial position c. Current asset in the statement of financial position d. Current liability in the statement of financial position