ChapteWEthChapter 2-shareholders' EquityMULTIPLE CHOICE QUESTIONSaMC1Unlimited liability of the ownersRight of successionLimited lifea.b.C.Exempt from taxation.MC6d.MC2What 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 capitalAmount received by the corporation when the shareoriginally issued.a.b.с.d.MCOwnership of shares in the ordinary share capital ofcorporation entitles the holders to the following rights:MC3To 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 IVII, III and IVI, III and IVI, II, and IIIa.b.с.d.MC4The entry to record the issuance of ordinary shares for fully paidsubscription isa.a memorandum entry.Ordinary Share Subscribedb.Ordinary Share CapitalShare Premium - Ordinary Shareс.Ordinary Share SubscribedSubscription ReceivableOrdinary Share Subscribedd.Ordinary Share CapitalMC5 Chapter 2 - Shareholders' EquitWhich feature of preference share makes it more of a liabilitythan an equity account?MC5a.Callableb.ConvertibleParticipatingRedeemableс.d.Which of the following transaction costs relating to issue ofshare capital shall be charged to profit or loss?MC6SEC registration fees for issue of new sharesunderwriting costsstock exchange listing feesdocumentary stamp tax in public offerings of sharea.b.с.d.A holder of a redeemable preference share canMC7purchase treasury shares any time at the shareholder'soption.purchase additional shares offered in order to maintainthe same fractional interest in the corporation.turn in the preference shares for a specified cash price ata specified date or during a specified periodconvert the preference shares for ordinary shares.a.b.с.d.MC8How would a share split affect each of the following?置AdditionalPaid-in CapitalNo effectTotal Shareholders'AssetsEquitya.IncreaseIncreaseNo effectNo effectNo effectb.No effectNo effectIncreaseс.d.DecreaseDecreaseDecreaseTreasury share is appropriately presented on the statement offinancial position as aMC9financial 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

Answered: MC1 Which of the following is a…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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