S1 The premium on the shares subscribed shall be recorded at the date of issuance of share certificate. S2 Treasury share are stated at acquisition cost and are treated as deduction from shareholders equity.  a. Both statements are true b. Both statements are false c. One statement is true, and the other one is false

Q: Which feature of preference share makes it more of a liability than an equity account? MC5 Callable…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Statement 1: Treasury shares are a company’s own shares that have been reacquired and retired.…

A: Treasury Share:- It is such type of share that is bought back by issuing company from stockholders…

Q: When the equity shares are issued for noncash consideration, the share capital is recorded at an…

A: Solution:  When the equity shares are issued for noncash consideration, following are priority to…

Q: When treasury shares are purchased for more than the par value of the shares and the cost method is…

A: The treasury stock includes the own shares of the company purchased from the shareholders.  This…

Q: Which of the following items is not presented under the equity section of the statement of financial…

A: The equity section contains the information that records about resources that owners invested and to…

Q: Cumulative shares : Select one: a. Is a type of common shares that allows certain shareholders to…

A: Preference shares are those shares that are given preference for dividends over the common…

Q: The Share Premium in excess of par account normally arises in the accounting records when? the fair…

A: Share premium is the amount in excess of the par value of the share. Share premium is to be…

Q: Earnings per share is computed on a. ordinary shares only b. preference shares only c. both…

A: Earnings Per Shares refers to Total Dividable profit divided by its number of common shares…

Q: A company has not declared a dividend on its cumulative preference shares for the past three years.…

A: Dividends is the share or part of profits that is being distributable to the shareholders of the…

Q: 1. Subscribed Share Capital shall be presented as 2. Treasury shares are an entity’s own shares…

A: Share capital refers to the money that the firm raises through issuing the stock either preferred or…

Q: When computing the weighted average of common shares outstanding for basic earnings per share,…

A: Earning per share (EPS) is the earnings assigned to each equity share of the firm. It is reported on…

Q: The following statements are true, except:    a. All issued shares are outstanding shares   b. All…

A: Solution: Following statements are true: 1. All outstanding shares are issued shares…

Q: si Shares as donated capital when subsequently sold will increase the shareholder's equity by the…

A: The question is related to Equity Section of Financial Statements. Donated capital is a asset…

Q: S1: Noncumulative preferred stock conveys to its owners the right to receive the preference dividend…

A: Preferred stock: Preferred stock refers to the kind of stock which offers different rights to the…

Q: Which of the following statements is true when dividends are not declared on cumulative preferred…

A: Cumulative preference share means where the dividend in arrears of last  year will also be paid.…