When an entity declares dividends * Only the outstanding shares are entitled to share dividends Only the issued shares are entitled to dividends Both the issued and outstanding shares, including reacquired shares, are entitled to dividends Only the outstanding ordinary shares are entitled to the dividends
Q: Which statement is true concerning retirement of treasury shares. * Retired shares can be reissued…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Statement 1: Upon issue of share rights, the issuing corporation records the transaction by a…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: When a company pays a dividend on ordinary shares, it appears as
A: When a company pays a dividend on ordinary shares, it appears as: Select one: a. a current liability…
Q: Which of the following items is not presented under the equity section of the statement of financial…
A: The equity section contains the information that records about resources that owners invested and to…
Q: Corporations with simple capital structures (only Common Stock issued) need not present Earnings per…
A: true Corporations with simple capital structures (only Common Stock issued) need not present…
Q: What is the entry to record the reissuance of donated shares from a shareholder? * Debited to the…
A: Cash A/c Dr. To Share premium Treasury shares A/c (Being…
Q: Bhefly discuss the difference between rights of holders of ordinary shares and preference shares…
A: The dividends are the earnings of the shareholders for their shareholdings in the company.
Q: All below are Preferred Share features EXCEPT ________________ A. A type of stock that provide a…
A: Both the preference shareholders and ordinary shareholders are owners of the company Equity…
Q: Who is considered to be owner of the company? a. Preference share holders O b. Debenture holders Oc.…
A: Answer - Correct Option is- Option D - Equity Share holders.
Q: b) The new shares which are issued in a rights issue are offered to the existing shareholders at…
A: Right Shares are those shares which are issued to the existing shareholder of the company instead of…
Q: d distribution. Class A shares The shares are subordinated to
A: Series A Shares are redeemable preference shares. After a defined time period, redeemable preference…
Q: Identify which category of shareholder's equity is affected by the item and briefly explain how it…
A: Statement of stockholders’ equity refers to a financial statement which shows the shares issued to…
Q: Ownership of shares of share capital entitles the holders to all of the following rights, except:…
A: >The ownership of the corporations are in the hands of number of stockholders. >The holder of…
Q: The pre-emptive right of common shareholders is defined as the right: a. to receive cash dividends…
A: Common shareholder's are true owner's of the company. These shareholder's is entitled to vote in…
Q: Common shares include which of the following characteristics: I. The right to vote for the board of…
A: Common Shares: Common shares represent the ownership in the Company. The Common shareholders are…
Q: The authorised share capital of a limited company is the: A. amount of shares issued to…
A: The authorised share capital of a limited company is a limit which is given by statutory authority,…
Q: S1 The premium on the shares subscribed shall be recorded at the date of issuance of share…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Determine if this shall result in recognition of liabilities 7. declaration of share dividends on…
A: The share dividend is a method of capitalizing on retained earnings. Generally, the large share…
Q: The par value of a share capital is * O The legal nominal value assigned to the share O The amount…
A: Share means a ita an financial instrument that a Company used for their Fund arrangements from the…
Q: Which of the following does not have the right to dividends? outstanding shares treasury shares…
A: All the outstanding shares are entitled to dividends. The shares that have been issued but are not…
Q: The total amount of cash and other assets received by a corporation from the stockholders in…
A: (A) Paid-in Capital: It is the amount paid by the stockholders of an entity in exchange of its…
Q: The declaration of a large share dividend by a corporation will O Increase its share capital O…
A: Dividends are part of profits that are distributed to the shareholders by the company. These…
Q: MAKE T-ACCOUNT for the following: Ordinary shares Preference shares Share…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Preferred stock is least likely to have which of the following characteristics?a. Preference as to…
A:
Q: Share dividends distributable is included in the statement of financial position O As a current…
A: Correct answer is option3# As an adjunct account to share capital
Q: Which of the following changes the total shareholder's equity balance? Issuance of share…
A: Shareholders: A private or legal entity registered by an organization as the legal holder of public…
Q: Statement 1: Upon issue of share rights, the issuing corporation records the transaction by a…
A: Share rights are those rights which are being given or provided to existing shareholders of the…
Q: The Issue of shares to only the existing shareholders of the same company is known as; a. Private…
A: The shares are the document issued by the company to its shareholders at the time of issuing the…
Q: Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect Bernal…
A:
Q: against the related share premium b. Charged to an expense account c. Written off directly against…
A: (a) Charged against the related share premium
Q: i. Compare and contrast forfeiture of shares and surrender of shares. Explain in each case five…
A: i. (1) Forfeiture of Shares: Meaning: Forfeiture of shares are very common that shareholder fails to…
Q: Which statement is incorrect? * A. EPS disclosures are required for entities whose ordinary shares…
A: EPS = Earning Per Share It refers to company's net profit Divided by No of common share…
Q: The right of a shareholder to share proportionally in any new stock issue is called a/an…
A: Shares are the units of stock of a corporation that are issued in the financial markets. A…
Q: If the preference shares are cumulative and fully participating, how much is the dividends to be…
A: Formula: Dividends to common share holders = Total dividends - preferred dividends
Q: What is advantges and dis advantge of shares repurchacse to the company
A: A share repurchase is also known as buyback. Here the concerned company buys back its own shares…
Q: The pre-emptive right of a common stockholder is the right to
A: Answer 1: Preemptive rights give a shareholder the occasion to buy fresh shares in any unborn issue…
Q: THE BOOK VALUE OF ORDINARY SHARES IS THE SAME AS PAR VALUE LIQUIDATION VALUE NET WORTH NET…
A: Book value per share is calculated by dividing the equity available to common share holders with the…
Q: Matching Type. Choose the correct answer in the box provided. These are distributions of the…
A: Share Dividend = These are distributions of the earnings of the corporation in the form of the…
Q: Treasury shares plus outstanding shares equal
A: Treasury stock: Treasury stock is the stock purchased back by the company. The company purchases…
Q: Which of the following information from the minutes of meetings would most likely affect the…
A: Retained earnings is the accumulated earnings of the business for the particular period of time.…
Q: a) Explain who is a member of a company and what are the rights and liabilities of members. (b)…
A: Member of the Company In a simple term the Member of the company which is described as the person…
Q: Which of the following is a current liability? O All of these. O A dividend payable in the form of…
A: Current liabilities are short-term liabilities that need to be paid or settled in a short period.…
Q: Which of the following is a current liability? A dividend payable in the form of…
A: Current liability - Current Liabilities is the obligation on the part of company to be paid within a…
Q: Market value per share is: Multiple Choice The right of common stockholders to protect their…
A: Equity shares are the investments that provide the buyer with ownership of the company. These are…
Q: Which of the following is a reserve of a limited liability company? A. Debentures B. Ordinary share…
A: Reserved are portion of business's profits which have been set aside to strengthen the business's…
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- 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 corporationWho are entitled to dividends? a. Issued and subscribed shares b. Outstanding and subscribed shares c. Issued shares d. Issued and Outstanding shares1. The issuer of an ordinary share dividend to ordinary shareholders should transfer from retained earnings to contributed capital an amount equal to the a. fair value of the shares issued. b. par or stated value of the shares issued. c. book value of the shares issued. d. minimum legal requirements. 2. Statement 1: Treasury shares are a company’s own shares that have been reacquired and retired. Statement 2: The cost method records all transactions in treasury shares at their cost and reports the treasury shares as a deduction from ordinary shares. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect. 3. The declaration and issuance of a share dividend a. increases ordinary shares outstanding and increases total equity. b. increases retained earnings and increases total equity. c. decreases retained earnings but does not change total equity. d. may increase share premium but does not change total…
- Which of the following information from the minutes of meetings would most likely affect the retained earnings account? Group of answer choices Declaration of a share-split Treasury shares acquisition Payment of an outstanding cash dividend Conversion of preference shares to ordinary sharesIndicate the principal effects of a stock dividend versus a stock split on the issuing corporation. Respond in the spaces as follows: Change and No Change. Stock Dividend Stock Split Number of Shares Outstanding Par Value per Share Total Par Outstanding Retained Earnings Total Stockholders' Equity Composition of Stockholders' EquityWhich of the following statements correctly relate to ordinary shares? i) They represent an ownership interest.ii) Ordinary equity holders are the first to have their claims met in the event of the company going into administration.iii) As dividends are the return to the shareholders, they are paid out of operating profits before tax.iv) Control rights often differ between ordinary and other classes of share.
- Which of the following is a current liability? A dividend payable in the form of additional ordinary shares. Dividend in arrears on preference shares. A cash dividend payable to preference shareholders. All of these.Which of the following transactions does not affect the Total Contributed Capital of the company? Conversion of Bonds Payable to Ordinary Shares Declaration of Cash Dividends Conversion of Preference Shares to Ordinary Shares Declaration and Issuance of 25% Stock Dividends Declaration and Issuance of 10% Stock DividendsMatch each of the following terms with the correct definition: a. additional paid-in capitalb. issued and outstandingc. retained earningsd. treasury stocke. authorized share capitalf. par value Correct Definitions:A. The price at which each share is recorded in the company’s booksB. Held by investorsC. Cumulative amount of profits that have been plowed backD. The difference between the amount of cash raised by an equity issue and the par value of the issueE. The maximum number of shares that can be issued without shareholder approvalF. The amount that the company has spent buying back stock that it has not subsequently resold
- Question 1What is the accounting treatment of the direct issue costs of shares of stocks?O Debit to the related share premiuin during organization stage and operating stageDebit to organizational cost during the organization stageDebit to revenue expenditure during the operating stageDebit to accumulated expenses during the operating stageDQuestion 2What is the total number of shares that a corporation may issue under its charter?O Authorized sharesIssued shareso Unissued sharesO Treasury sharesEQuestion 3In case shares are issued for outstanding liabilities, what is the measure of recording share capital and share premium?O Par value of the shares issuedAmount of liabilities set-offFair value of the shares issuedBook value of the shares issuedWhich of the following is entitled to dividends? a. Total shares issued b. Total shares issued, net of treasury shares c. Total outstanding liability d. Total authorized sharesWhen a small, share capital dividend is declared, Retained Earnings is debited for the a. par value of the share capitalb. fair market value of the share capital on the date of recordc. fair market value of the share capital on the date of declarationd. fair market value of the share capital on the date of distribution
