The authorised share capital of a limited company is the: A. amount of shares issued to shareholders B. amount paid for shares by the shareholders C. maximum amount of shares that can be issued D. minimum amount of shares that can be issued

The authorised share capital of a limited company is the: A. amount of shares issued to shareholders B. amount paid for shares by the shareholders C. maximum amount of shares that can be issued D. minimum amount of shares that can be issued

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 3MCQ: Authorized stock represents the: number of shares that are currently held by stockholders. number of...

See similar textbooks

Related questions

Q: Question 1 What is the accounting treatment of the direct issue costs of shares of stocks? O Debit…

A: Ques 1 Direct issuance cost of shares of stock should be recorded as expense in the income…

Q: Share dividends distributed shall be reported as O a note to financial statement O a reduction in…

A: A dividend payment that is given in the form of shares rather than cash is referred to as a stock…

Q: The issuer of an ordinary share dividend to ordinary shareholders should transfer from retained…

A: When company issues stock dividend then it should Debit amount of dividend declared to retained…

Q: Macanas Company had 125,000 shares issued as of January 1, 2018, which includes 25,000 treasury…

A: Answer) Calculation of Number of shares issued Number of shares issued = Total number of shares…

Q: Outstanding shares are the

A: Outstanding shares are the shares that the traded in the market. It is important to note that these…

Q: When a corporation has only one class of share capital, book value per share is computed as…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: Which of the following is entitled to dividends? Total outstanding liability Total authorized…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: When a corporation issues new ordinary shares, which of the following will increase? I. Total…

A: New shares can be issued by the company for raising finances of the company. It will generate cash…

Q: Which of the following is entitled to dividends? a. Total shares issued b. Total shares…

A: Treasury shares are not entitled to dividends as they are reacquired by the company itself.…

Q: 30. The par value of ordinary share capital represents a. the liquidation value of the share…

A: >The corporations get their finance mainly from the issuance of share capital.>The share…

Q: Treasury shares represent the ______________________ a. Number of previously issued shares that…

A: A company issues shares in the open market. If it feels that the price of its share in the market…

Q: Information disclosed in a balance sheet/statement of financial position about shares of common…

A: Introduction: Authorized shares: It means company is authorized to issue number of shares to public.

Q: Who are entitled to dividends? a. Issued and subscribed shares b. Outstanding and subscribed…

A: The dividend is paid from the retained earnings of the business to its shareholders.

Q: 3. Authorized shares represent the a.number of shares that have been sold. b.number of shares that…

A: Stocks: Stocks are shares in ownership of other companies. It represents the capital raised by a…

Q: When treasury shares are reissued as dividends, what amount shall be charged to accumulated profits?

A: Treasury Stock also known as treasury shares are the outstanding equity shares of a company…

Q: MAKE T-ACCOUNT for the following: Ordinary shares Preference shares Share…

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Q: The par value of ordinary share capital represents a. The amount received by the corporation when…

A: Par value of the share = Equity share capital/ No of outstanding shares Par value is the nominal…

Q: Authorized registered capital represents a. Number of shares that shareholders have subscribed for…

A: Authorized capital refers to the maximum amount of capital that a company is authorized to issue to…

Q: share capital, book value per share is computed as: A. Total contributed capital over the total…

A: Solution: When a corporation has only one class of share capital, book value per share is computed…

Q: share capital of a company may consis

A: Share capital indicating simply the capital gained by the company by issuing shares. It may issued…

Q: Describe the corporate form and the issuance of shares of stock.

A: Describe a corporation form of business. A corporation is a form of business where the business is…

Q: Which of the following is a reserve of a limited liability company? A. Debentures B. Ordinary share…

A: Reserved are portion of business's profits which have been set aside to strengthen the business's…

Q: All of the following would appear in the contributed capital section of shareholders' equity on the…

A: Contributed Capital means amount of capital contributed by the shareholders of the corporation. It…

Q: Which of the following affects the total Shareholders’ Equity? a. Declaration of a scrip…

A: a Declaration of a scrip dividend :- this dividend is paid to shareholders at later date , company…

Q: Treasury stock should be reported in the financial statements of a corporation as a(n) Oa.…

A: Treasury stocks are the stocks repurchased by the company.

Question

The authorised share capital of a limited company is the:

A. amount of shares issued to shareholders
B. amount paid for shares by the shareholders
C. maximum amount of shares that can be issued
D. minimum amount of shares that can be issued

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

Par value of a stock refers to the ________. A. issue price of a stock B. value assigned by the incorporation documents C. maximum selling price of a stock D. dividend to be paid by the corporation
Authorized stock represents the: number of shares that are currently held by stockholders. number of shares that have been sold. number of shares that have been repurchased by the corporation. maximum number of shares that can be issued.
The par value of ordinary share capital represents a. The amount received by the corporation when the share was originally issued. b. The book value of the share capital c. The liquidation value of the share capital d. The legal nominal value assigned to the share capital
The share capital of a company may consist of: Select one: a. Loans from banks. b. Ordinary or preference shares issued by the company either fully paid or partly paid. c. Debentures issued by the company. d. Secured and unsecured notes issued by the company.
Which of the following is a reserve of a limited liability company? A. DebenturesB. Ordinary share capitalC. Retained earningsD. Ordinary stock
Which of the following is entitled to dividends? Total outstanding liability Total authorized shares Total shares issued Total shares issued, net of treasury shares What is the date on which the fair value of the equity instrument granted is measured? Grant date Report date Measurement date Exercise date
Which of the following is entitled to dividends? a. Total shares issued b. Total shares issued, net of treasury shares c. Total outstanding liability d. Total authorized shares
Share dividends distributed shall be reported as a note to financial statement a reduction in total shareholders' equity an addition to share capital outstanding a current liability
1. The issuer of an ordinary share dividend to ordinary shareholders should transfer from retained earnings to contributed capital an amount equal to the a. fair value of the shares issued. b. par or stated value of the shares issued. c. book value of the shares issued. d. minimum legal requirements. 2. Statement 1: Treasury shares are a company’s own shares that have been reacquired and retired. Statement 2: The cost method records all transactions in treasury shares at their cost and reports the treasury shares as a deduction from ordinary shares. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect. 3. The declaration and issuance of a share dividend a. increases ordinary shares outstanding and increases total equity. b. increases retained earnings and increases total equity. c. decreases retained earnings but does not change total equity. d. may increase share premium but does not change total…
Treasury stock should be reported in the financial statements of a corporation as a(n) Oa. investment Ob. liability Oc. current asset Od. deduction from stockholders' equity
When a corporation issues new ordinary shares, which of the following will increase? I. Total liabilities; II. Total Assets; III. Quick Assets; IV. Net Worth a. I and II b. III and IV c. II,III, and IV d. I,II, III, and IV
Which of the following is ordered from the largest numberof shares to the smallest number of shares?a. Shares authorized, shares issued, shares outstanding.b. Shares issued, shares outstanding, shares authorized.c. Shares outstanding, shares issued, shares authorized.d. Shares in treasury, shares outstanding, shares issued.