Which of the following is incorrect? * Reacquisition of treasury shares decreases total shareholder's equity. Reissuance of treasury shares increases total shareholder's equity. Reacquisition and reissuance of treasury shares both affect the share capital. None of the above is incorrect.
Q: Which of the following is true? * When treasury shares are reissued, the related unrestricted…
A: The treasury shares are the shares that are reacquired by the company from its own shares.
Q: Is it true or false that corporations muse issue common stock, but may or may not decide to issue…
A: It is the decision taken by board of directors whether to issue preference shares/stock.
Q: Which account cannot be used if a corporation has only one class of shares? a. Preference shares…
A: When the company sells its share in order to accumulate capital such amount is called share capital.…
Q: The issuance of preference shares ? Increases preference shares outstanding. Has no effect on…
A: Outstanding shares means the number of shares which are issued by the company. These shares can be…
Q: Which of the following does not represent a pair of GAAP/IFRS-comparable terms? a. Additional…
A: GAAP are the general accounting principles which are to be followed by the U.S companies in…
Q: Provide differences of Treasury Share with Ordinary Share or Preference Share. Give the accounting…
A: The answer is stated below:
Q: Which is not true of preference shares? * A. Payment of dividends is mandatory if cumulative.…
A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…
Q: Analyze the following: I – The features most frequently associated with preference shares exclude…
A: Preference shares are one of the type of shares. These are the shares who get the benefit of…
Q: Standard requires every stock corporation to disclose the amount of unrestricted retained earnings…
A: treasury stock has another name treasury shares are required shared means previously outstanding…
Q: Which of the following statements about treasury stocks are correct? I. Treasury stocks does not…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: Which of the following is False in regards to Share premium account? a. It will be shown under the…
A: THE SHARE PREMIUM ACCOUNT REPRESENTS THE DIFFERENCE BETWEEN THE PAR VALUE OF THE SHARES ISSUED AND…
Q: Which of the following statements is false? Group of answer choices Stocks are long-term securities…
A: Stocks are ownership while bonds are liabilities to the firm
Q: Which of the following is NOT a characteristic of an ordinary share? a) The dividends are at the…
A: Ordinary share is a common stock which gives ownership of the company.
Q: A stock dividend: ) Is not a liability on the corporation's balance sheet. Does not reduce a…
A: A stock dividend is a dividend that is made to the shareholders in shares and not in cash. The stock…
Q: Which of the following terms are most likely to appear in the owners' equity section of a corporate…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Which of the following is not a characteristic of the commonstock of a large, publicly owned…
A: When a corporation issues stock to persons, then these are known as owners or shareholders of the…
Q: Which statement is FALSE? O A. Preferred stockholders receive assets before the common stockholders…
A: The preference shareholders are also known as preferred stock boulders. The stockholders have the…
Q: Answer the follow: Explain the corporate characteristic termed “no mutual agency" Explain the…
A: The question is related to Characteristics of Comapnies. A company is an artificial person created…
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: Which of the following does not appear under the heading: Capital and reserves in a company balance…
A: Capital and reserves head of the balance contains the information regarding share capitals and…
Q: Which of the following statements is correct? A corporation's issued stock may exceed its…
A: Issued capital of company can be greater than outstanding stock as out of issue stock, company may…
Q: A feature common to both stock splits and stock dividends is Select one: a. That there is no effect…
A: A feature common to both stock splits and stock dividends is that there is no effect on total…
Q: What is Treasury share? What are the reasons that the corporation for reacquisition of shares?
A: Treasury shares are the shares that are brought back by the issuing entity from the open market from…
Q: If the corporation when formed sets a par value for its shares low and issue common stock for a…
A: Corporation can issue at its stock at par value, more than par value or below par value. For…
Q: Which statement is incorrect? * a. On repurchase of treasury shares, no gain or loss is recognized.…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Which statement regarding treasury stock is false?a. Treasury stock is considered to be issued but…
A: Treasury stock: The shares which were reacquired or bought back by the company, but not formally…
Q: The cost of retained earnings is less than the cost of ordinary shares because of *
A: Issuance cost: This is incremental cost directly associated with issue of ordinary shares. This cost…
Q: Which of the following is not a common characteristic of preferred stock? Select one: a. Callability…
A: Preferred stock holder means those stock holder who will be getting dividend before the common…
Q: Which statement is incorrect? a. Book value per share is the claim of a shareholder in the net…
A: A share is the division in the capital of the company. A shareholder is entitled to receive division…
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: Which feature is not applicable to common stock ownership?a. Right to receive dividends before…
A: Common stock: It can be defined as the form of corporate equity that represents the ownership…
Q: i. Explain the corporate characteristic termed “no mutual agency” ii. Explain the corporate…
A: Here discuss about the structure of corporation type business and its characteristic like common…
Q: statements correctly relate to ordinary shares? i) They represent an ownership interest. ii)…
A:
Q: l of the following are true about the issuance of non-voting common stock except a. it has been…
A: Issue of Shares : The company sell its common stock of shares to collect the amount of capital from…
Q: For which of the following purposes is it LEAST logical for a company to issue equity securities on…
A: In the primary market, equity is raised through an IPO where equity shares are directly received…
Q: Which of the following statements is false? a. one of the disadvantages of incorporation is the…
A: Corporation:A business concern where there is a separate legal entity, and are owned by…
Q: Gain on sale of treasury shares should be credited to: * A. Share Premium from treasury shares…
A: Gain on sale of treasury shares is credited to a specific account for gain.
Q: Which of the following is a current liability? a. Preferred dividends in arrears. b. A dividend…
A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…
Q: Which statement is incorrect? * Book value per share is the claim of a shareholder in the net…
A: Ordinary shareholders have right in the net assets of the respected company. Preference shareholders…
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- 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.d. (1) What are the two primary ways companies raise common equity? (2) Why is there a cost associated with reinvested earnings? (3) Jana doesnt plan to issue new shares of common stock. Using the CAPM approach, what is Janas estimated cost of equity?What amount of the proceeds from the issuance of no-par, no-stated-value stock is recorded in the Capital Stock account?
- Which of the following statements is false regarding treasury shares? [A] purchasing treasury shares would decreasethe total shareholders’ equity [B] the resulting gain in selling treasury shares is presented as share premium fromtreasury shares [C] treasury shares will not receive cash dividends [D] the retirement of treasury shares will decreasethe total shareholders’ equity.Which of the following statements is incorrect? Issued shares of stocks include those that have been at one time been sold to the public and which have been subsequently retired. If an entity’s capital stock is retired, the Share Capital account is reduced by its par value, the number of shares is reduced by the stock retired and the treasury stock is credited at cost. Treasury shares may be reissued as dividends, in which case the cost of the shares should be charged to Retained Earnings. Though may be used in computing for the Share Capital, stated value is not similar to par value of stock.1.Which statement is incorrect? * a. On repurchase of treasury shares, no gain or loss is recognized. The purchase price would become the cost of treasury shares. b. On reissuance of treasury shares, the difference between the cost and reissue price of treasury shares is debited or credited to share premium rather than to profit or loss. c. If treasury shares are retired above par, the difference between the cost and the par value is automatically charged to retained earnings. d. Treasury shares can be subjected to share split and can be re-issued as share dividends. e. none of the above 2. Which statement is incorrect? a. Dividends out of retained earnings is limited to the balance of unappropriated retained earnings, except for share dividends. b. Cash dividends are paid on the basis of the number of shares issued less the number of treasury shares. c. Property dividends payable shall be measured based on fair value of the property on the date of declaration, reporting and…
- Which of the following statement is false in regards to Share premium? a. It will be shown under equity section in the balance sheet b. It will be credited at the time of issue of new shares along with premium c. It cannot be distributed as dividend to the shareholders d. It can be distributed as dividend to the shareholdersWhich of the following is False in regards to Share premium account? a. It will be shown under the shareholders equity b. It will be collected when the issue price is more than the par value of shares c. It will be collected when the par value of share is more than the issue price d. It will not be shown under current assets in the balance sheetingWhen non-par value shares are reacquired at a cost greater than their average issue price and cancelled, what account(s) should be debited? Select one: a. The share account for the total cost. b. The share account for the average issue price, contributed surplus-repurchases up to its account balance, other contributed surplus relating to this class of shares in proportion to the number of shares repurchased versus outstanding and lastly retained earnings for any remaining amount. c. The share account for the average per share amount, retained earnings for the additional amount, and lastly contributed surplus for any remaining amount. d. The share account for the average per share amount and a loss account for the additional amount. e. none of the above answers are correct.
- 1. What is the accounting for treasury share transactions? a. On repurchase or re-issuance of previously purchased own shares, no gain or loss is recognized. b. Treasury shares are accounted for as financial assets. c. On re-issuance of treasury shares, a gain or loss is recognized equal to the difference between the previous repurchase price and the re-issuance price. d. On repurchase of treasury shares, a gain or loss is recognized equal to the difference between the amount at which the shares were issued and the repurchase price for the shares. . 2. If a no-par value share is issued... a. The value of each share is automatically ₱5. b. The corporation is automatically in violation of its state charter. c. There is no legal capital. d. The entire proceeds is considered as legal capital. . 3 Which of the following statements relating to bonds is incorrect? a. None of the choices b. A bond’s face value is the amount the issuer must pay…7. If treasury shares are subsequently retired and the cost of the treasury shares exceeds the par value, the difference is charged Group of answer choices a. first, Share premium from the original issuance and then Retained Earnings. b. first to share premium from original issuance and then share premium from treasury shares of the same class. c. first to share premium from original issuance, and then share premium from treasury shares of the same class and then to retained earnings. d. first to share premium from treasury shares of the same class and then the balance to retained earnings.Which is not true of preference shares? * A. Payment of dividends is mandatory if cumulative. B. Preference shares are convertible to ordinary shares or bonds. C. It is similar to debt financing in terms of limited cost payment. D. Cost is higher than cost of bonds.