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
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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
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
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:
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
a.) True
b.) False
Question 12:
Treasury stock should be reported in the financial
statements of a corporation as a(n)
a.) deduction from
b.) investment
c.) liability
d.) current asset
Question 13:
A subscription receivable is generally treated as a deduction from the total shareholders equity
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.
Question 2:
When a corporation reacquired its own shares due to delinquency and there are no bidders, the share must be retired immediately.
Select one:
a.) True
b.) False
Question 3:
Using the journal entry method, what is the appropriate entry when there is an issuance of share capital?
a.) Debit to authorized share capital
b.) Credit to authorized share capitalc.
c.) Credit to unissued share capital
d.) Credit to share capital
Question 4:
An ordinary shareholder receives the same preference and rights as a preference shareholder.-
Select one:
a.) True
b.) False
Question 6:
A journal entry for sale of fully paid stocks is not necessary under the memorandum method of accounting for share capital.
Select one:
a.) True
b.) False
Question 8:
A delinquent subscriber cannot obtain a portion of his subscriptions if sold to the highest bidder.
Select one:
a.) True
b.) False
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