Which of the following items would not appear in the section of the statement offinancial position (balance sheet) headed 'Capital and reserves'?a) Share premiumb) Revaluation reservec) Preference sharesd) Debentures

A capital reserve is different from the reserve capital. The reserves are the amount set aside by a…

Answered: Which of the following items would not…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 39MCQ: Which of the following are not part of common equity? a. preferred stock c. retained earnings b....

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Which of the following are not part of common equity? a. preferred stock c. retained earnings b. common stock d. treasury stock
Which of the following does not represent a pair of GAAP/IFRS-comparable terms? a. Additional paid-in capital/Share premium. b. Treasury stock/Repurchase reserve. c. Common stock/Share capital—ordinary. d. Preferred stock/Preference shares.
Which of the following is not a method that may be used to account for treasury shares?a. Cost methodb. Par value methodc. Retained earnings methodd. Constructive retirement methodC
Which of the following would NOT be reported for capital stock in the contributed capital section of a classified balance sheet? Group of answer choices A.Dividends per share B.Shares issued C,Shares outstanding D.Shares authorized
Which of the following does not appear under the heading: Capital and reserves in a company balance sheet? A. Ordinary share capital B. Debentures C. Share premium account D. Non- voting shares.
Which of the following best represents the hierarchy of creditor and stockholder claims? Group of answer choices A. Senior secured debt, subordinated debentures, common stock B. Senior debentures, subordinated debentures, junior secured debt C. Common stock, senior secured debt, subordinated debentures D. Preferred stock, secured debt, debentures
When preparing the stockholders' equity section of the balance sheet, assume that the following accounts have normal balances. Which of these account balances would not be an addition to the Paid-In Capital section? Group of answer choices Common Stock (credit balance) Treasury Stock (debit balance) Paid-In Capital in Excess Par Common Stock (credit balance) Preferred Stock (credit balance)
Redeemable preference shares will be shown under: a. Equity in the statement of financial position b. Non current liability in the statement of financial position c. Current asset in the statement of financial position d. Current liability in the statement of financial position
Mandatorily redeemable preferred stock (preference shares) is reported among liabilities and their dividends are reported in the income statement as interest expense using a. U.S. GAAP. b. IFRS. c. Both U.S. GAAP and IFRS. d. Neither U.S. GAAP nor IFRS.
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
Preference shares, as noted in AASB 132: Select one: a. should be regarded as debt when redemption is at the option of the holder or on a specified date. b. will be classified as debt or equity based on their legal form rather than the substance of the financial instrument. c. exhibit the characteristics of equity when they are non-redeemable. d. will have their classification as debt or equity affected by the intention to make distributions in the future
Based on the rules issued by the FASB, mandatorily redeemable preferred stock has to be classified as a balance sheet Stockholders’ Equity. True Or False

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Which of the following items would not appear in the section of the statement of financial position (balance sheet) headed 'Capital and reserves'? a) Share premium b) Revaluation reserve c) Preference shares d) Debentures