Equity instruments include all of the following, except * A. Preference shares B. Corporate bonds and other debt instruments issued by the entity. C. Ordinary shares D. Warrants or options that allow the holder to purchase a fixed number of ordinary shares of the issuing entity in exchange for a fixed amount of cash or another financial asset.

Q: allows the investor to transform debt into equity under certain circumstances. a. Equity shares b.…

A: Introduction: Bonds: Bonds is a debt. For bonds interest is charged on the Bond value.

Q: Convertible preferred stock is normally converted into a. shares of common stock b. warrants c.…

A: Conversion of convertible preferred stock / convertible bonds is usually at option of holder of…

Q: When a company decides to issue capital on the stock market what is the process called? (a) An…

A: A) An Initial Public Offering means a company issuing capital to public for the first time on stock…

Q: A share lending agreement

A: Agreement can be defined as the mutual consent between two or more parties upon the some case or to…

Q: Which of the alternative lists of securities below ranks the ecurities in order of increasing risk?…

A: Risk, in the context of finance and investment, refers to the uncertainty or potential for financial…

Q: Under Application Guidance 36 of IAS 32, an entity’s own equity instruments also known as treasury…

A: IAS 32 is providing guidance on classification of financial instruments as financial liabilities and…

Q: The sale of stock and the sale of bonds are reported as financing activities. Are payments of…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: If an entity has issued cumulative redeemable preference shares to the market, discuss what effects…

A: Preference shares are those shares on which a fixed rate of dividend is paid by the company. At the…

Q: Differentiate treasury shares with redeemable shares. (With explanation and example)

A: Many companies have more than one type of  shareholder and it's possible to issue different share…

Q: Bonds that permit the bondholder to exchange the bonds into shares of common stock at a fixed price…

A: 1) Callable Bond is a derivative which gives the issuer the right to redeem the bond before bond's…

Q: In case of payment of convertible bonds, the balance of Share Premium - Conversion Privilege account…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: Corporate bonds that can be exchanged for shares of the corporation's common stock if certain…

A: Reason:A convertible bond is a hybrid type of security that provided fixed interest income along…

Q: The sale of bonds is also referred as: a. Public Finance b. Debt Finance c. Equity Finance d.…

A: The Bonds is a type of  a loan. When  a company, Government or muncipal corporation is in need of…

Q: Bonds which permit the bondholder to convert the bonds into shares of stock are called: Select one:…

A: AS THE NAME SUGGESTS , THE CONVERTIBLE BONDS ALLOW THE OWNER THE OPTION TO CONVERT BONDS INTO A…

Q: Marketable securities include investments in bonds and in the capital stocks of publicly traded…

A: Marketable securities are shown as current assets in the balance sheet of the company and cash flow…

Q: Computalog Inc. showed the fo080 Bonds payable, convertible Less: thamortized discount View…

A: Journal entry is the basic of accounting. It is used to record day to day transactions of the…

Q: Bonds which are collateralized by specific assets in the event the borrowing company defaults on…

A: Bonds are a form of liability for the business. These can be issued for short term or long term.…

Q: 4. Investments in debt securities include all of the following, except for a. U.S. treasury…

A: Investments in debt securities: This is the security in which the debt instrument would be either…

Q: The following data were taken from the balance sheet accounts of Sage Corporation on December 31,…

A: The distribution of the company’s profit to the shareholders is termed as dividends. There are…

Q: Stock appreciation right would normally be settled through

A: Stock appreciation right is the payment made to the workers of a company in respect of appreciation…

Q: Which of the following is NOT a capital market instrument? a) Bonds b) Right Issue c) Commercial…

A: Capital market instruments are those instruments whose main purpose is to link investors with the…

Q: Under IFRS, how are convertible debt recorded? Convertible debt is separated into equity component…

A: Solution: Under IFRS, convertible debt are recorded as "Convertible debt is separated into equity…

Q: A company issues Non-convertible bond with Equity Warrants. This security is equal to Preferred…

A: A non-convertible bond is a bond that does not give the holder the choice to convert it to shares.…

Q: When the conversion of bonds payable to common stock is recorded under the market value method and…

A: Journal entry will be - bonds payable debit…

Q: In an equity swap where a liability is settled through the issuance of equity securities A.no gain…

A: According to IFRS the financial liability is renegotiated and the equity is issued to a creditor in…

Q: Which of the following items would not appear in the section of the statement of financial position…

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

Q: Capitalization is:   A. A corporation's total investments consisting of common stock and preferred…

A: Market cap—or market capitalization—refers to the total value of all a company's shares of stock. It…

Q: Investments in debt securities are classified into the following categories according to…

A: Investment in debt securities: Purchase of debt securities of another corporation.

Q: Private placement is the: a. Sale of securities indirectly to a select group of investors. b. Sale…

A: Equity financing is referred as the fund raising for a company by selling its shares. The person who…

Q: Collateralized Debt Obligations (CDO’s) are pools of__ a) all tranches of MBS b) the mezzanine and…

A: Collaterized Debt obligations are very complex  financial  products that are secured by group of…

Q: Investments in debt securities made to generate trading gains are classified as:   Multiple Choice…

A: Investment in securities means to put the money in some securities in order to get returns in…

Q: When an entity issued bonds payable with detachable share warrants, how will share premium be…

A: When an entity issued bonds payable with detachable share warrants, how will share premium be…

Q: The issuing of shares ( stocks) can be showed in the Financing activities O Investing activities…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: For the past year, Cline Company had fixed costs of $6,552,000, a unit variable cost of $444, and a…

A: SOLUTION BREAK EVEN SALES (IN UNITS) = FIXED COST / CONTRIBUTION PER UNIT.

Q: :A dicount on bonds payable .Occurs when a corporation issues bonds with a stated rate more than the…

A: A discount on bonds payable is a contra liability account which represents unamortized discount on…

Q: bond is a liability of the issuing company and a share of stock represents ownership in the company

A: Bonds are the instrument issued by company acknowledging the debt due from company to bond holder…

Q: The secondary market is the market in which: Select one: a. The sale proceeds of a trade flow to the…

A: Definition : In simple words, The secondary marketplace also referred to as the aftermarket, can be…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.