In an audit of stockholders’ equity which among the following is a correct application of generally accepted accounting principles? a. Retired treasury shares are deducted from the shareholders’ equity of the company 2. Subscriptions Receivable are deducted from the share capital account of the company except when they are collectible within one year. 3. Share Warrants Outstanding are included in the share capital account of the company. 4. All share capital transactions are recorded at their respective par values regardless of the prevailing market value of each share of stock.

In an audit of stockholders’ equity which among the following is a correct application of generally accepted accounting principles? a. Retired treasury shares are deducted from the shareholders’ equity of the company 2. Subscriptions Receivable are deducted from the share capital account of the company except when they are collectible within one year. 3. Share Warrants Outstanding are included in the share capital account of the company. 4. All share capital transactions are recorded at their respective par values regardless of the prevailing market value of each share of stock.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter13: Corporations: Earning & Profits And Distributions

Section: Chapter Questions

Problem 1BD

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Question

In an audit of stockholders’ equity which among the following is a correct application of generally accepted accounting principles?

a. Retired treasury shares are deducted from the shareholders’ equity of the company

2. Subscriptions Receivable are deducted from the share capital account of the company except when they are collectible within one year.

3. Share Warrants Outstanding are included in the share capital account of the company.

4. All share capital transactions are recorded at their respective par values regardless of the prevailing market value of each share of stock.

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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