Share capital dividends declared but not yet distributed as of the statement of financial position date should be reported as a (an) current liability b. addition to share capital outstanding c. reduction in total shareholders' equity d. noncurrent liability a.

Share capital dividends declared but not yet distributed as of the statement of financial position date should be reported as a (an) current liability b. addition to share capital outstanding c. reduction in total shareholders' equity d. noncurrent liability a.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 5MC: Treasury stock is listed as a(n) __________ on the balance sheet. (a) current liability (b) current...

See similar textbooks

Related questions

Q: Explain Matching Principles?

A: Matching concept is an accounting principle which explains the need to match revenue with the…

Q: Describe the PW method?

A: There are different types of methods for comparing the worthiness of the projects. Some of the tem…

Q: What is the actual formula used to get this answer?

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: Explain FLSA and its purpose.

A: FLSA stands for fair Labor Standards Act. It is an act that aims at protecting the interest of…

Q: Define core applications, and give some examples.

A: Definition: Core application: Core application refers to the operational work and is mainly…

Q: please explain the answer B

A: In the net realizable value method, joint costs are allocated based on the total final sales value…

Q: Explain an example of prepayments.

A: The outflow of money to reduce the liabilities occurred in the current accounting period refers to…

Q: Explain an example of external users.

A: Financial Statement: They are annual reports of an organization summarizing the financial…

Q: Explain the objectives of FIFO method.

A: First-in-First-Out: In First-in-First-Out method, the costs of the initially purchased items are…

Q: Define Prepayments.

A: Step 1 The outflow of money to reduce the liabilities occurred in the current accounting period…

Question

Answer the question below and provide an explanation.

Share capital dividends declared but not yet distributed as of the statement
of financial position date should be reported as a (an)
current liability
b. addition to share capital outstanding
reduction in total shareholders' equity
d. noncurrent liability
MC 9-3
a.
C.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Treasury stock is listed as a(n) __________ on the balance sheet. (a) current liability (b) current asset (c) deduction from stockholders equity (d) addition to stockholders equity
Which of the following would be classified as non-current liability? *a. Unearned revenueb. Mandatory redeemable preference sharesc. The current maturing portion of long-term debtd. Accrued salaries payable to management
According to PAS 1, dividends declared by an entity are disclosed in thea. Statement of changes in equityb. Notesc. None of thesed. c or d The first line in the Statement of changes in owner’s equity isa. Profit or lossb. Beginning capitalc. Additional contributionsd. Drawings
6. Unrealized gains and losses on investments in trading securities are reported a. as a current assetb. on the income statementc. on the balance sheet as part of stockholders' equityd. as a contra asset
8. Realized gains and losses on investments available for sale are reported a. as a current assetb. on the income statementc. on the balance sheet as part of stockholders' equityd. as a contra asset
Stockholders equity consists of which of the following? A. bonds payable B. retained earnings and accounts receivable C. retained earnings and paid-in capital D. discounts and premiums on bond payable
The issuer of a 5% common stock dividend to common shareholders should transfer from retained earnings to contributed capital an amount equal to the Select one: A. par or stated value of the shares issued. B. market value of the shares issued. C. book value of the shares issued. D. minimum legal requirements.
S1: The conversion of preference share capital into ordinary share capital increases the total shareholders' equity. S2: The Donated Capital account is shown as part of share premium of the reserves section of the shareholders' equity. a. Only S1 is correct b. Only S2 is correct c. Both statements are correct d. Both statements are incorrect.
For fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl ected in shareholders’ equity?B . Th ey fl ow through retained earnings.
Match each of the items below with its most appropriately-related “letter” classification. (“Letter” classification may be used more than once, or not at all.)A. Fair Value Adjustment G. Available-for-sale debt securities B. Statement of Cash Flows H. Equity holdings between 20% and 50% C. Trading debt securitiesI. Temporary differences, deferred tax assetD. Equity holdings less than 20% J. Permanent differences E. Held-to-maturity debt securities K. Temporary differences, deferred tax liability F. Statute of Limitations L. Equity holdings more than 50% ____ 1. Premiums paid on life insurance of officers (company is the beneficiary).____ 2. Amortized cost; unrealized holding gains or losses not recognized; interest when earned.____ 3. Consolidation of financial statements; parent and subsidiary company income or loss combined.____ 4. Estimated future warranty costs.____ 5. Represents the increase in taxes refundable (or saved) in future yearsas a result of deductible temporary…
The conversion of preference shares into ordinary shares requires that any excess of the par value of the ordinary shares issued over the carrying amount of the preference shares being converted should be Select one: O a. reflected currently in other comprehensive income. O b. reflected currently in income. treated as a direct reduction of retained earnings. O c. O d. treated as a prior period adjustment.
ASSETS LIABILITIES AND CAPITALa. Current assets b. Investments c. Plant and equipment d. Intangiblese. Other assets f. Current liabilities g. Long-term liabilitiesh. Preferred stock i. Common stock j. Additional paid-in capitalk. Retained earningsl. Items excluded from balance sheetUsing the letters above, classify the following accounts according to the preferred and ordinary balance sheet presentation. _____ 1. Bond sinking fund_____ 2. Common stock distributable_____ 3. Appropriation for plant expansion_____ 4. Bank overdraft_____ 5. Bonds payable (due 2010)_____ 6. Premium on common stock_____ 7. Securities owned by another company which are collateral for that company's note_____ 8. Trading securities_____ 9. Inventory_____ 10. Unamortized discount on bonds payable_____ 11. Patents_____ 12. Unearned revenue