S1: When no-par value stock does not have a stated value, the entire proceeds from the issuance of thestock becomes legal capital.S2: Under the memorandum entry method: If there are no bidders for the delinquent subscription, thecorporation may bid and reacquire the shares, and record the transaction with a memo entry.Select the correct response:Sl is True; S2 is FalseS1 is False; S2 is TrueS1 & S2 are FalseS1 & S2 are True

The Memorandum entry method is used when there are no debit and credit amounts. Memorandums are…

Answered: S1: When no-par value stock does not…

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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Similar questions

Flora plc is a largo listed company which needs to raise new equity finance. It has decided to make an offer of new shares direct to the investing public.What method of public offer is being used by Flora plc?A. Offer for saleB. Initial Public Offering (IPO)C. Offer for subscriptionD. Underwritten offer for sale by tender
The journal entry to record a stock split includes a: Select one: a. None of the available choices b. Credit to the associated shares account c. Debit to Cash d. Debit to the associated shares account
Statement 1: Upon expiry or lapse of stock rights, a necessary Journal Entry is required to recognize such transaction.Statement 2: Share/stock dividends of the same class are recognized by means of a memorandum entry only.Statement 3: Share/stock dividends of different class are recognized by debiting a new investment account and crediting the original investment account. A. All statements are incorrect B. All statements are correct C. Only one statement is correct D. Only two statements are correct
i need a solution vr.9
If a company repurchases its own stock, the journal entry to record this transaction will cause 'Total Stockholders' Equity to increase on the Balance Sheet. True False
An initial public offering (IPO) is when a corporation sells stock to the general public for the first time. Question 2 options: True False
A company may not issue its shares_________. Select one: a. directly to investors b. through an investment institution that specializes in market the marketing of shares c. only after receiving the full issue value d. only at par value of shares
Attempt in Progress Your answer is incorrect. If a company has trading securities, it will report unrealized changes in their value O only when sold. O directly in shareholders' equity. O as part of income. O on the income statement only if there is a loss. eTextbook and Media Save for Later Attempts: 1 of 2 used Submit Ans %24 % 4. 5 7 8 9 t y u f h k
Please dont provide plagiarised answer thank you
Treasury stock is: Canceled as soon as it is acquired. O A current asset. O Included in issued shares. Stock owned by the Treasurer of the company.
Which statements are true?1. [S1] Preference shares are considered a hybrid type of financing because dividends paid to preference shareholders are tax deductible. [S2] Cumulative preference shares require the payment of dividends but the timing of payment may be adjusted according to the wishes of the board of directors.2. [S1] By executing a rights offering, we acknowledge the preemptive right of current ordinary shareholders. [S2] When an initial public offering has been made, the underwriter would remit to the issuing entity cash equal to the total issue price less any issuance cost chargeable against the former. 3. [S1] When the entity issues a long-term debt instrument, it exposes itself to solvency risk. [S2] When the board of directors agreed to regularly issue stock dividends, it faces liquidity risk.
H5. A member or candidate who changes his recommendation on a stock can comply with the Standards by communicating this change to clients according to: Question 35Answer a. number of shares of the stock owned by the client. b. known interest of the client in the stock. c. size of the client. Explain wrong options and explain with full details

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