Which of the following item does not appear under the head ‘Reserves and Surplus’ in Balance Sheet a. General reserve b. Sinking Fund c. Unclaimed Dividend d. Securities Premium

Q: What is the difference between total assets and total liabilities? a) Dividend b) Bond sinking…

A: Balance sheet has two parts ASSETS and LIABILITIES

Q: When preference share is cumulative, preferred dividends not declared in a period are  a. never paid…

A: Answer: When preference share is cumulative, preferred dividends not declared in a period are…

Q: s not useful for analyzing changes in financial state s useful in analyzing relationships within a…

A: Vertical analysis of financial statements is a where each line item is expressed as a percentage…

Q: The Retained Earnings account: a. is a special fund for paying shareholders' dividends on the basis…

A: Retained earnings is the profit that is left after paying all the expenses, dividend and taxes. Such…

Q: reasury stock was acquired for cash ta price in excess of its par value. he treasury stock was…

A: Solution: Under cost method, on acquisition of treasury stock entire cost is debited to treasury…

Q: 5. How is the treasury share account presented in the Statement of Financial Position? a. deducted…

A: ANSWER ÷ (b) deducted from shareholder's equity

Q: Unrealized holding gains and losses on debt securities classified as available for sale would have…

A: Other Comprehensive Income refers to items of income and expenses that are not recognized as a part…

Q: 1) The capital market consist of : A. Treasury bill B. Certificate of deposit C. Purchases agreement…

A: Since more than three sub parts are posted at a time, the answer for first three questions is only…

Q: Which of the statements are not correct Select one: a. Profits refers to earnings before Interest…

A: Earnings before interest and tax is the profitability indicator for a company that is also referred…

Q: Dividend revenue is recognized for trading securities and available for sale securities even if held…

A: Solution Concept Dividend is recognized in income statement for trading securities if they are held…

Q: Comprehensive income includes the following except: A. revenues and gains B. expense and loss C.…

A: Comprehensive income  : Comprehensive income is the income of business which is the variation of…

Q: Which statement cash of flows shows the inflows and outflows of the issue and repurchase of stock?…

A: Cash flow is a statement that provide  data regarding cash inflow and cash outflow of the company…

Q: eported earnings become overstated as a result of failure to record  a. the amortization of premium…

A: Solution Concept The reported earnings is overstated when the expenses has not been recorded or…

Q: The statement of stockholders equity does not include -retained earnings -equity method investments…

A: The statement of stockholders equity is part of the financial statement balance sheet. It depicts…

Q: e element in the accumulated other comprehensive income section of shareholders' equity. is reported…

A: Available-for-sale securities are debt or equity investments purchased with an intent to sell them…

Q: Concerning the actual dividend paid that can be used as an input to the dividend discount model…

A: Financing section of the cash flow statement includes the outflow and inflow of cash in relation to…

Q: Trading securities, by definition, are properly classified in the statement of financial position…

A: Statement of financial position is also known as balance sheet, which is prepared at the year-end to…

Q: Which statement is not true?

A: In the above question, there are four statements; we must identify which of the four statements is…

Q: Which of the following is not a defining feature of common stock? a residual claim on assets voting…

A: Common stock: The common stock is considered as a security that signifies proprietorship in a…

Q: Which of the following would result from watered shares? overstated capital understated assets…

A: solution : Which of the following would result from watered shares? Correct answer is overstated…

Q: Undeclared dividends (in arrears) to cumulative preferred stockholders must be filed to. in the…

A: Dividends are payments made by a company to its shareholders in the form of cash, stock, or other…

Q: In what section of the balance sheet should the following items appear, and what balance sheet…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: When retiring treasury stock, retained earnings could be affected under which of the following…

A: Treasury stock means where the own stock has been repurchased by company from open market and can be…

Q: The most difficult component cost of financing to measure is the cost of ________   a Preferred…

A: The component cost of financing for debt is interest.

Q: Why dividends are not deductible?And what could be the order of priority regarding income and assets…

A: Dividends: It refers to the that part of the profit that is given to common shareholders. It is…

Q: Which of the following is not an undistributable reserve?    A. Share premium account     B.…

A: Undistributable reserve means reserves which are not available for distribution to share holders.…

Q: Which of the following is not a financing activity: O Issuance of bonds payable O Sale of investment…

A: Introduction: Statement of cash flows: All cash in and out flows are recorded in statement of cash…

Q: Which of the following is not a long term source of capital? a. Preferred stock b. Common stock c.…

A: Sources of capital can be long-term and short-term. Those sources which have a repayment period of…

Q: How should a "gain" from the sale of treasury stock be reflected when using the cost method of…

A: ANSWER   It will be recorded as a paid-in capital from treasury stock. Although the company made a…

Q: how is this reposrted in the statement of cash flow using the direct method? conversion if bonds…

A: Answer : Is not shown

Q: Which of the following would be classified as a financing activity on a statement of cash flows?…

A: Solution: Financing activity section of statement of cash flows reflects the net cash flows used to…

Q: For the following six items, indicate which financial statement category would be affected: (1) net…

A: Hello, I am only answering the first three subparts as per the policy and if you want others to be…

Q: The term reserves is used under IFRS with reference to all of the following except:(a) gains and…

A: International Financial Reporting Standards (IFRS):  International Financial Reporting Standards is…

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: 7. Which of the following dividends are not considered current liabilities when declared? a.…

A: current liabilities are the liabilities that are to be paid within one year. for example -…

Q: Which of the following is included in the Reserves? Preference Share Capital Subscribed Ordinary…

A: Preference Share Capital: This is part of Capital Stock under shareholder's equity.  Subscribed…

Q: Which of the following does not decrease retained earnings? Select one: a. Stock dividends b. Cash…

A: In this question has covered the concept of Retained Earnings

Q: Under the capital maintenance concept, which of the following items should be deducted from the…

A: Capital maintenance is an accounting concept based on the principle that a company's income should…

Q: Why are unrealized gains and losses on available-for-sale securities not reported in theincome…

A: Definition: Generally Accepted Accounting Principle (GAAP): Generally Accepted Accounting Principle…

Q: When preference share is cumulative, preferred dividends not declared in a period are a. called…

A: Solution: When preference share is cumulative, preferred dividends not declared in a period are…

Q: Which of the following is included in the Reserves?     a. Subscribed Ordinary Share Capital b.…

A: We have shareholders' funds in the balance sheet which is subclassified into share capital and…

Q: which of the following balances can the paid in capital treasury stock account not have zero…

A: Paid in capital treasury stock account is opened when a company sells it's treasury shares over…

Q: The appropriate section in the statement of cash flows for reporting conversion of preferred stock…

A: Statement of cash flows is the statement which shows all cash inflows and cash outflows of business…

Q: The payments made to a fund's shareholders that result from the sale of securities in the fund's…

A: Distribution can be of two types to the fund shareholders, first is to payment of cash to the…

Q: Treasury stock a. Has a normal credit balance. b. Decreases stockholders’ equity.c. Is recorded as…

A: Treasury stock is the company's own stock which is reacquired by the Company and shown under equity…

Q: Which is a component of stockholder's equity? a. Sinking funds b. Deferred charges c. Accumulated…

A: a. Sinking fund is a long term asset and included in the company's Balance sheet as Non current…