ACC2363_Assignment 8_Q #10 Purchase of Company's Own Shares

Which of the following statements is false?   A.   Mutual funds are pool investor funds to purchase financial instruments and thus reduce risks through diversification.   B.   Initial public offering (IPO) occurs when firm issues stock in the public market for the first time.   C.   The difference between current assets and non-current assets equals to working capital.   D.   Owner’s equity is the residual interest in assets that remains after subtracting an entity’s liabilities.

Select all that apply Which of the following items are classified as noncash investing and financing activities? (Check all that apply.) Conversion of preferred stock to common stock Lease of assets in a long-term lease transaction Repayment of a note with cash Retirement of debt by issuing stock

Indicate in which of the three categories Preferred shares issued for cash should appear and whether it is an inflow or an outflow of cash: Multiple Choice Operating inflow None of the other alternatives are correct Financing outflow Financing inflow Investing outflow X

What does "liquidity" refer to in finance? A) The profitability of a companyB) The ease of converting assets to cashC) The value of fixed assetsD) The number of outstanding shares  i need answer.

Dhapa

A company’s publicly listed shares:   a. Can be traded on any share market around the world   b. Represent an ownership claim on the company’s real assets (net of liabilities)   c. Are guaranteed to provide a dividend cash-flow   d. All of the above   e. None of the above

Why is there a cost for retained earnings? Group of answer choices Earnings can be reinvested or paid out as dividends Investors could buy other securities, earn a return Neither Either

1. Identify the most acceptable value of share capital in exchange of non-cash asset.  options •Fair market value of share issued •Fair market value of non-cash asset received •Par value of share capital issued. •Carrying value of the non-cash asset received. 2. Which of the following is included in the equity section of a corporate business?  •Investment in equity shares •Treasury shares •Subscription Receivable – current •Unearned revenue

The following terms were introduced in this chapter:   Strategic investments Non-strategic investments Investments at fair value through profit or loss (FVTPL) Investments at amortized cost (AC)   Match each term with the following definitions:   _________ Debt securities that are held to earn interest income _________ Investments purchased to influence or control another company _________ Debt or equity investments that require holding gains or losses to be included in the determination of the company’s profit or loss. _________ Investments purchased mainly to generate investment income

Choose the correct.When an investor uses the equity method to account for investments in common stock, the investor’s share of cash dividends from the investee should be recorded as:  a. A deduction from the investor’s share of the investee’s profits.b. Dividend income.c. A deduction from the stockholders’ equity account, Dividends to Stockholders.d. A deduction from the investment account(AICPA adapted)

Which of the following is a current liability? a. Preferred dividends in arrears. b. A dividend payable in the form of additional shares of stock. c. A cash dividend payable to preferred stockholders. d. All of these answers are correct.

The assumption that a business enterprise will not be sold or liquidated in the foreseeable future is known as the:   Question 12 options:   economic entity assumption.   materiality.   going concern assumption.   fair value principle. Which of the following is not a category to measure financial statement elements?   Question 13 options:   Cash-flow measures.   Current (market) value measures.   Cost-based measures.   Hybrid measures.

Which of the following is most likely true regarding payment of dividends? a. Dividends may be paid from legal capital b. Retained earnings are available for dividends unless restricted by contract or by statute c. Unrealized capital is available for any type of dividend d. Capital from donated assets is available for dividends

Subscriptions receivable from sale of shares which are not collectible currently shall be presented asRequired to answer. Single choice. a. current assets b. deduction from the related subscribed share capital in the shareholder's equity section c. long-term investment d. other asset.