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MC1 Which of the following is a characteristic of a corporation? Unlimited liability of the owners Right of succession Limited life a. b. C. d. Exempt from taxation.

MC1 Which of the following is a characteristic of a corporation? Unlimited liability of the owners Right of succession Limited life a. b. C. d. Exempt from taxation.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chapte WE th Chapter 2-shareholders' Equity MULTIPLE CHOICE QUESTIONS a MC1 Unlimited liability of the owners Right of succession Limited life a. b. C. Exempt from taxation. MC6 d. MC2 What does the par value of share capital represent? Liquidation value of the share capital. Book value of the share capital. Legal nominal value assigned to the share capital Amount received by the corporation when the share originally issued. a. b. с. d. MC Ownership of shares in the ordinary share capital of corporation entitles the holders to the following rights: MC3 To elect the board of directors of the corporation. To share in the profits of the corporation. To purchase new shares when they are offered for sale. To participate in the daily operations of the corporation. I. II. III. IV. I, II, III and IV II, III and IV I, III and IV I, II, and III a. b. с. d. MC4 The entry to record the issuance of ordinary shares for fully paid subscription is a. a memorandum entry. Ordinary Share Subscribed b. Ordinary Share Capital Share Premium - Ordinary Share с. Ordinary Share Subscribed Subscription Receivable Ordinary Share Subscribed d. Ordinary Share Capital MC5
Transcribed Image Text:Chapte WE th Chapter 2-shareholders' Equity MULTIPLE CHOICE QUESTIONS a MC1 Unlimited liability of the owners Right of succession Limited life a. b. C. Exempt from taxation. MC6 d. MC2 What does the par value of share capital represent? Liquidation value of the share capital. Book value of the share capital. Legal nominal value assigned to the share capital Amount received by the corporation when the share originally issued. a. b. с. d. MC Ownership of shares in the ordinary share capital of corporation entitles the holders to the following rights: MC3 To elect the board of directors of the corporation. To share in the profits of the corporation. To purchase new shares when they are offered for sale. To participate in the daily operations of the corporation. I. II. III. IV. I, II, III and IV II, III and IV I, III and IV I, II, and III a. b. с. d. MC4 The entry to record the issuance of ordinary shares for fully paid subscription is a. a memorandum entry. Ordinary Share Subscribed b. Ordinary Share Capital Share Premium - Ordinary Share с. Ordinary Share Subscribed Subscription Receivable Ordinary Share Subscribed d. Ordinary Share Capital MC5
Chapter 2 - Shareholders' Equit Which feature of preference share makes it more of a liability than an equity account? MC5 a. Callable b. Convertible Participating Redeemable с. d. Which of the following transaction costs relating to issue of share capital shall be charged to profit or loss? MC6 SEC registration fees for issue of new shares underwriting costs stock exchange listing fees documentary stamp tax in public offerings of share a. b. с. d. A holder of a redeemable preference share can MC7 purchase treasury shares any time at the shareholder's option. purchase additional shares offered in order to maintain the same fractional interest in the corporation. turn in the preference shares for a specified cash price at a specified date or during a specified period convert the preference shares for ordinary shares. a. b. с. d. MC8 How would a share split affect each of the following? 置 Additional Paid-in Capital No effect Total Shareholders' Assets Equity a. Increase Increase No effect No effect No effect b. No effect No effect Increase с. d. Decrease Decrease Decrease Treasury share is appropriately presented on the statement of financial position as a MC9 financial asset at fair value. deduction at cost from total shareholders' equity. deduction at cost from total contingent liabilities. deduction at par from total shareholders' equity. a. b. с. d. 159
Transcribed Image Text:Chapter 2 - Shareholders' Equit Which feature of preference share makes it more of a liability than an equity account? MC5 a. Callable b. Convertible Participating Redeemable с. d. Which of the following transaction costs relating to issue of share capital shall be charged to profit or loss? MC6 SEC registration fees for issue of new shares underwriting costs stock exchange listing fees documentary stamp tax in public offerings of share a. b. с. d. A holder of a redeemable preference share can MC7 purchase treasury shares any time at the shareholder's option. purchase additional shares offered in order to maintain the same fractional interest in the corporation. turn in the preference shares for a specified cash price at a specified date or during a specified period convert the preference shares for ordinary shares. a. b. с. d. MC8 How would a share split affect each of the following? 置 Additional Paid-in Capital No effect Total Shareholders' Assets Equity a. Increase Increase No effect No effect No effect b. No effect No effect Increase с. d. Decrease Decrease Decrease Treasury share is appropriately presented on the statement of financial position as a MC9 financial asset at fair value. deduction at cost from total shareholders' equity. deduction at cost from total contingent liabilities. deduction at par from total shareholders' equity. a. b. с. d. 159
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