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- Ma4. A company prepares its financial statements according to IFRS its financial statements include ordinary share capital and share premium the company used US gaap what would be likely account titles for these accounts, respectively •Common stock, par value, additional paid-in capital, Share purchase •Common stock additional paid-in capital •Preferred stock additional paid-in capital preferred stock •Common stock, par value, additional paid-in capital stock options 2) what is the term for actuaria gains and losses and how are they accounted for in the IFRS •Actuarial gains and losses accounted for as an OCI item •Remeasurement gains and losses accounted for as an OCI item •Remeasurement gains and losses accounted for as a profit or loss •Actuarial gains and losses accounted for as a profit or lossP1 M&M Proposition 2 states that the cost of a firm's common stock is directly related to the debt-to-equity ratio. both the debt-to-equity ratio and the required rate of return on the firm's underlying assets. the return of the market index. the required rate of return on the firm's underlying assets.p6 According to M&M Proposition 2, the cost of a firm’s common stock is directly related to the rating of its common stock in the market. the number of shares outstanding. its asset turnover ratio. its debt-equity ratio.
- Q1 Which one of the followings is least important for dividend decisions A. Attract institutional investors B. Stability of future earnings C. Flotation cost of issuing new equity D. Maintaining consistency with historic dividend policy F. A sustainable change in earnings Q2 With a right offerings, each shareholder is issued an obligation to buy a specified number of new shares from the firm at a specified price within a specified time, after which the rights expire. True False1. The cost method of accounting for stock investments is used when the company acquires a. Greater than 50% of the company's stock b. Between 20% to 50% of the company's stock c. Less than 20% of the company's stock 2. The significance of percentage of ownership relates to how much _____________ the acquiring company has in the new company. a. data b. control c. confidenceEnter 1, 2, 3, or 4 that represents the correct answer. The declaration and issuance of 15% stock dividend (when fair value of the share is greater than the par): 1. increases common shares outstanding and decreases total stockholders' equity. 2. decreases retained earnings and increases paid-in capital in excess of par. 3. does not change total stockholders’ equity and does not change paid-in capital in excess of par. 4. may increase or decrease paid-in capital in excess of par but does not change total stockholders' equity.
- Q2. a) Why companies are issuing stock dividend? What are the influential factors and the impact of it to the business and stockholders’ point of view. b) The board of directors of ABC Company recently announced a 24% stockdividend. Assuming that the current stock price is OMR 8 and there are 700,000 total ordinary shares outstanding of OMR 0.600 each.You are required to determine the following:i) Determine the market capitalization of the Company before the stock dividend.ii) Determine the increase in shares outstanding due to a 20% stock dividend.iii) Determine the new total shares outstanding.iv) Determine the price per share of the Company after stock dividendWhile the discounted dividend model values a company’s stock based on its dividends, the corporate valuation model values a company’s stock based on the company’s: Question 49 options: Assets Free cash flow Net income Book value of equityQuestion 19 An investor uses the cost method of accounting for its investment in common stock. During the current year, the investor received $25,000 in dividends, an amount that exceeded the investor's share of the investee company's undistributed income since the investment was acquired. The investor should report dividend income of what amount? Answers: A. $25,000 as a reduction in the investment account B. $25,000 less the amount that is not in excess of its share of undistributed income since the investment was acquired C. $25,000 less recognized earnings D. $25,000 less the amount in excess of its share of undistributed income since the investment was acquired Question 20 Pitch Co. paid $50,000 in fees to its accountants and lawyers in acquiring Slope Company. Pitch will treat the $50,000 as Answers: A. additional cost to investment of Slope on the consolidated balance sheet. B.…
- 17. Analyze the equity section of Gingerbread Corp's balance sheet and determine the following. Be careful to discriminate between a non monetary value and a monetary value. Use a $ sign to indicate a dollar value. 1.Number of shares of common stock that have been issued 2.Number of shares of preferred stock that have been issued 3.BlankDollar value the company paid to repurchase their own stock 4.How many shares of stock are in treasury stock?which one is correct answer please confirm? Q5: In order for a stock to qualify for inclusion on the "legal lists," a firm must ____. a. have a record of continuous and stable dividends b. have assets in excess of $500,000 c. have 10 continuous profitable quarters d. register with the Securities Exchange Commission (SEC)Indicate whether the following actions would (+) increase, (–) decrease, or (0) not affect a company's total assets, liabilities, and stockholders' equity. Stockholders' Assets Liabilities Equity (a) Declaring a cash dividend _______ _______ _______ (b) Paying the cash dividend declared in (a) _______ _______ _______ (c) Declaring a stock dividend _______ _______ _______ (d) Issuing stock certificates for the stock dividend declared in (c) _______ _______ _______ Question 10 options:
