When a small, share capital dividend is declared, Retained Earnings is debited for the a. par value of the share capital b. fair market value of the share capital on the date of record c. fair market value of the share capital on the date of declaration d. fair market value of the share capital on the date of distribution

When a small, share capital dividend is declared, Retained Earnings is debited for the a. par value of the share capital b. fair market value of the share capital on the date of record c. fair market value of the share capital on the date of declaration d. fair market value of the share capital on the date of distribution

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 8MC: The total amount of cash and other assets received by a corporation from the stockholders in...

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The total amount of cash and other assets received by a corporation from the stockholders in exchange for the shares is ________. A. always equal to par value B. referred to as retained earnings C. always below its stated value D. referred to as paid-in capital
Par value of a stock refers to the ________. A. issue price of a stock B. value assigned by the incorporation documents C. maximum selling price of a stock D. dividend to be paid by the corporation
Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.
rdinary share capitalOrdinary share capitalWhich of the following items would not form part of the shareholders' equity of a company on the statement of financial position? Select one: a. Retained profits b. Trade payables c. Share premium d. Ordinary share capital
How would the share dividends distributable account balance be presented on the statement of financial position? * a. as part of current liabilities b. as addition to share capital c. as addition to retained earnings d. as addition to additional paid in capital
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
Sale of treasury shares at less than cost shall be charged to * a. Loss on sale of treasury shares to be reported as other expense b. Retained earnings and then additional paid in capital from treasury share transactions c. Additional paid in capital from treasury share transactions and then retained earnings d. Share premium from original issuance, additional paid in capital from treasury share transactions and then retained earnings
Which of the following affects the total Shareholders’ Equity? a. Declaration of a scrip dividend b. Declaration of share split c. Appropriation of retained earnings d. Retirement of treasury shares
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
The difference between authorized share capital and issued share capital is known as __________. Select one: a. current share capital b. preference share capital c. ordinary share capital d. unissued share capital
When the selling price of treasury shares is greater than its cost, the company credits the difference to a.Gain on Sale of Treasury Shares. b.Share Premium–Treasury. c.Treasury Shares. d.Share Premium–Ordinary.
Which of the following affects the total Shareholders’ Equity? Appropriation of retained earnings Declaration of a scrip dividend Declaration of share split Retirement of treasury shares