Which of the below statements is false for equity? A. Limited liability B.Residual claim on firm value C.Payouts to equity holders must be made before interest payments D.Voting Rights
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Which of the below statements is false for equity?
A. Limited liability
B.Residual claim on firm value
C.Payouts to equity holders must be made before interest payments
D.Voting Rights
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Solved in 2 steps
- 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.When the market value of a companys available-for-sale securities is lower than its cost, the difference should be: a. shown as a liability. b. shown as a valuation allowance added to the historical cost of the investments. c. shown as a valuation allowance subtracted from the historical cost of the investments. d. No entry is made, the securities are shown at historical cost.Which of the following is the second option in measuring the equity instrument issued to extinguish a financial liability A.fair value of the equity instrument B.carrying amount of the equity instrument Cfair value of the financial liability D.carrying amount of the financial liability
- Which of the following statements is TRUE regarding the equity method? A. The equity method is used for reporting gains or losses for non-strategic investments. B. The investor's share of the associate's dividends declared is reported as revenue. C. The investor's investment in the associate changes in direct relation to the changes taking place in the associate's equity accounts. D. The equity method reports unrealized gains and losses on revaluations to fair value in net income.1. What is the differences between restricted and unrestricted investment account? (A) Right to commingle funds (B) Right to share profits (C) Right to guarantee returns (D) Right to additional equity sharesIs there a consequence for reported profit or loss if a particular financial instrument, for example, a preference share, is designated as debt rather than equity? Explain the consequence.
- For purposes of measuring a firm’s leverage, should preferred stock be classified as debt orequity? Does it matter whether the classification is being made (a) by the firm’s management,(b) by creditors, or (c) by equity investors?Under IFRS No. 9, which reporting categories are used to account for equity investments when the investor lacksthe ability to significantly influence the operations of the investee?which reporting categories are used to account for equity investments when the investor lacks the ability to significantly influence the operations of the investee?
- What is the partial equity method? How does it differ from the equity method? What are its advantages and disadvantages compared to the equity method?Common stockholders; a. have the first claim on the income and assets of the firm b. contribute towards a firm's debt capital c. do not have voting rights in general d. No option is correctWhich of the following statements are true Select one: a. All the options b. Capital structure depends on the conditions of the market c. Debt is also called as bond d. Preference shareholders are given preference at the time of liquidation e. The capital structure mix does not influence the total earnings of the firm.