Accounting type Question: Bonus shares cannot be issued out of: A. Profit and Loss a/c B. CapitalRedemption reserve C. General reserve D. Dividend equalisation fund

Bonus shares are issued by cashing in on the free reserves of the company. The assets of a company…

Answered: Accounting type Question: Bonus shares…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 5MC

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Similar questions

Contributed capital does not include a. Preference shares b. Share premium on preference shares c. Capital accumulated by retention of earnings d. Ordinary shares
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
Which 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 sheeting
Comprehensive income includes the following except: A. revenues and gains B. expense and loss C. unrealized gain or loss on trading securities D. dividends received from preference share E. answer not given
Which of the following can not be used for redemption of preference shares? A. Insurance Fund B. Workmen's Compensation Fund C. General Reserve D. Profit Prior to Incorporation
Which of the following is not a defining feature of common stock? a residual claim on assets voting rights a residual claim on cash flows a fixed return
Accounting: type question:, Which of the following items is not taken in profit and loss appropriation account? A. Transfer to dividend equalisation reserve B. Transfer to general reserve C. Provision for taxation D. Proposed dividend
Which one or more of the following would you not include within the heading Equity and Reserves in a company’s Statement of financial position: Revaluation reserve or Share premium account, or Redeemable Preference Shares or Dividend declared.
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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
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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.

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Accounting type Question: Bonus shares cannot be issued out of: A. Profit and Loss a/c B. Capital Redemption reserve C. General reserve D. Dividend equalisation fund