Share premium is an income to the company. Select one: True False

Q: profit of a firm if a debenture is issued at

A: A debenture is said to be issued at a premium  when the price charged is more than its nominal…

Q: OR FALSE The P/E ratio relates a company’s reported earnings per share to the market price of its…

A: The P/E ratio stands for Price earnings ratio. Price earnings ratio is arrived at by dividing Market…

Q: Net profit margin is a key measure of profitability that relates the net profits of a firm to its…

A: · Ratio analysis used to identify the business performance of the company.· It is used to measure…

Q: When accounting for small share dividend, which of the following will be use in recording such…

A: The share dividend is the dividend provided to the shareholders in the form of shares.

Q: Is there a consequence for reported profit or loss if a particular financial instrument, for…

A: Equity Stock represents the ownership in the company. Equity shareholders have the residual claim on…

Q: Is Share Dividends qualify as Revenue?

A: If the entity is in the business of buying and selling shares and securities then share dividends…

Q: Which of the following best describes the possible result of treasury share transactions?    a. May…

A: The treasury shares are the shares which are repurchased by company from its own shares.

Q: Retained earnings refer to the portion of a corporation's profits that are paid out to shareholders.…

A: B.  false Retained earnings are not paid to shareholders.  Generally dividend paid to shareholders ,…

Q: Use the following information in answering the next item(s): FORGIVENESS INC. is authorized to issue…

A: When the shares of a company are issued at a price above and over the face value, it is said to be…

Q: Define the term Earnings per common share?

A: Earnings per common share: A company generate the portion of profit or loss every year. Earnings per…

Q: Which of the following statements is CORRECT? Group of answer choices The component cost of…

A: Retained earnings:Retained earnings refer to the percentage of net earnings not paid out as…

Q: The shareholders of the company gets share in the profit. This distribution of profit is called as O…

A: The distribution of the profits by the company to the shareholders is called the Dividend... Option…

Q: Explain the following Investment ratios and indicate how they are computed: Earnings per share (EPS)…

A: Earnings per share (EPS) is ascertained as the benefit of an organization divided by outstanding…

Q: The cost of dividend payable on redeemable preference shares should be included in______. Select…

A: Redeemable preference shares are those preference shares that will be repaid or redeemed after some…

Q: TRUE OR FALSE? Share dividend payable is a current liability.

A: Dividends are distribution of net earnings by a coproration to its shareholders. Divdend may be paid…

Q: The price/earnings ratio is commonly used by investors to OA. evaluate their ability to earn a…

A: The investor uses multiple financial ratios to evaluate the company and its performance. These…

Q: Gross profit is a measure of the overall profitability of a company. True False

A: Gross profit is a form of profitability measure in business. It is calculated by deducting cost of…

Q: Is share dividend payable a current or a non current liability? Explain your answer.

A: The dividend is payable to shareholders on a number of shares they hold as of the date of…

Q: a. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio…

A: a. When return on total assets is considered, interest expense is added to the net income and…

Q: Specified investment business income does not include... Multiple Choice Dividends Rents Interest G…

A: The correct answer to the question is "Capital Gains"The specified investment business income…

Q: When you are purchasing a company stock, you are purchasing part of the company.

A: Companies issue stocks or shares for raising money from those investors who want to invest their…

Q: Statement I. Book value per share is tantamount to earnings per share Statement II. Dividends…

A: Book value per share is ratio of shareholders equity less preferred equity to number of shares…

Q: Cost of equity can be calculated using the SML approach or the dividend discount models. True or…

A: Cost of equity is the return that the company pays to its shareholders in exchange for providing the…

Q: The proportion of profits distributed as dividends is called the and the retained proportion of…

A: Financial ratios refer to an accounting or business metric used by companies for comparing two…

Q: Earnings per share is a factor used to determine dividends. Select one: True False

A: False, dividend per share is the factor used to determine dividends. Earnings per share will give…

Q: True

A: Common stock refers to the shares in a company that is owned by the general public and has several…

Q: True or False: When stock is issued for more than its par value, the excess is considered to be an…

A: Additional paid-in-capital can be defined as the extra amount received from the investor for an…

Q: When the selling price of treasury shares is greater than its cost, the company credits the…

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

Q: Is the market price per share Net income Less Preferred Dividends

A: Yes. Market Price per share is already given in the question and NET INCOME- Preferred Dividends is…