Multipe choice : Question 1: Ordinary shares, 50,000 shares P100 par P5,000,000 The shareholders equity of ANITA Corporation appears as follows: Share premium = 200,000 Retained Earnings = 2,000,000 Treasury shares, 5,000 were acquired at P160/share If the treasury shares were reissued for P600,000 what will be the correct journal entry? A.) Cash 600,000      Share Premium 200,000                tReasury shares  800,000 b.)  Cash  600,000                  Treasury shares 600,000 c.) Cash  600,000      Retained Earnings 200,000                      Treasury shares  800,000 d.) Treasury shares  600,000                  Cash  600,000 Question 2:  A 1,000 shares subscription was declared delinquent. The outstanding receivables from A related to 1,000 shares is P110,000. Which of the following offers would pertain to the highest bidder?                          Allocation of 1,000 shares. a.)   Bidder                 Delinquent subscriber          750                            250 b.) Bidder                    Delinquent subscriber        400                                 600 c.) 1,000 shares  , None d.) Bidder                  Delinquent subscriber           500                         500 shares Question 3: The shareholders equity of ANITA Corporation appears as follows: Ordinary shares, 50,000 shares P100 par = P5,000,000 Share premium = 200,000 Retained Earnings = 2,000,000 Treasury shares, 5,000 were acquired at P160/share If treasury shares were reissued for P800,000 what will be the correct journal entry? a.) Cash  800,000          Share Premium  200,000          Treasury shares 500,000          Retained earnings 100,000 b.) No correct answer c.) Memorandum entry only d.) Treasury Shares  800,000               Cash  800,000 e.) Cash  800,000                Treasury shares  800,000 Question 4: The legal capital is equal to the total shareholders equity. Select one: A.) True b.) False Question 5:  Sampaguita Corp is authorized to issue P1,000,000 share capital divided into 10,000 shares with P100 par. If 2,000 shares were sold on cash basis at P150 per share, the gain to be part of the accumulated profits is a.) P200,000 b.) P0.00 c.) P100,000 d.) P300,000 Question 5:  Authorized shares capital is equal to issued plus unissued.Select one: a.) True b.) False Question 6:  The shareholders equity of ANITA Corporation appears as follows: Ordinary shares, 50,000 shares P100 par = P5,000,000 Share premium =200,000 Retained Earnings =2,000,000 Treasury shares, 5,000 were acquired at P160/share If the treasury shares were reissued for P1,000,000 what will be the correct journal entry? a.) Cash  800,000      Retained Earnings 200,000                       Treasury shares  1,000,000 b.) Cash  1,000,000             Treasury shares  800,000              Retained earnings 200,000 c.) Cash  1,000,000             Treasury shares  800,000              Share Premium  200,000 d.)  Cash  1,000,000                Treasury shares   1,000,000 Question 7: Preference shares has preference over ordinary shares relative to a.) Dividends and voting rights b.) Voting rights and assets at liquidation c.) Dividends and assets at liquidation d.) Dividends and maturity date Question 8: The ordinary shares are issued only for cash consideration.- Select one: a.) True b.) False Question 9:  Under the journal entry method, the issuance of share certificate would be recorded as credit to share capital. Select one: a.) True b.) False Question 10:  Under the cost method, when treasury stock is purchased by the corporation, the par value and the price at which the stock was originally issued are important. Select one: a.) True b.) False Question 11:  The charter of a corporation provides for the issuanceof 100,000 shares of ordinary shares. Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding? A.)  40,000 b.) 50,000 c.) 30,000 d.) 10,000 Question 12:  Treasury stock should be reported in the financial statements of a corporation as a(n) a.) deduction from stockholders’s equity b.) investment c.) liability d.) current asset Question 13:  A subscription receivable is generally treated as a deduction from the total shareholders equity Select one: a.) True b.) False Question 14:  The equity shares available that can be purchased in the stock market are called a.) Treasury shares b.) Outstanding shares c.) Authorized shares d.) Issued shares Question 15:  The corporation could not sell its equity shares at an amount in excess of the amount of its authorized share capital. Select one: a.) True b.) False Question 16:  If a corporation is liquidated, preferred stockholders are paid before the creditors and before the ordinary shareholders. Select one: a.) True b.) False Question  17:  If Everly Company issues 1,000 shares of P5 par value ordinary shares for P75,000, the account a.) Cash will be debited for P70,000 b.) Share premium will be credited for P5,000 c.) Share premium of Par Value will be credited for P70,000. d.) Ordinary shares will be credited for P75,000.