The original issuance of share capital for a consideration less than its par value is least likely called as options •watered stock •Discount on share capital •Issuance below par or stated value •Reissuance of treasury share below cost 2. At what date should share certificate be issued? Subscription Authorization Full payment Retirement

The original issuance of share capital for a consideration less than its par value is least likely called as options •watered stock •Discount on share capital •Issuance below par or stated value •Reissuance of treasury share below cost 2. At what date should share certificate be issued? Subscription Authorization Full payment Retirement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In an equity swap where a liability is settled through the issuance of equity securities A.no gain or loss is recognized B.gains are recognized as Share Premium, losses are expensed. C.gain or loss is recognized as the difference between the measurement amount of the equity securities issued and the carrying amount of the liability derecognized D.any apparent gain or loss is recognized in equity as an addition to share premium
If all prefers dividned payments that have been missed must be payed before any common stock dividned can be paid, the preffered stock is called ____________ prefferd stock. A. Cumulative B. Participating C. nonparticipating D. Voting E. Duel class
Which of the following transactions DOES NOT require any postings to the ledger? O Authorization of share capital under the memorandum entry method O Reversal of appropriation for contingencies Sale of donated shares under the cost method O Reacquisition of shares from delinquent subscription when there is no bidder
Treasury shares reduce the number of shares ________. Group of answer choices issued authorized outstanding available
An offering of a new issue of shares to existing shareholders who may purchase new shares in proportion to their current ownership position is known as a: Select one: a. Rights issue b. Initial Public Offering (IPO) c. Dividend Reinvestment Plan (DRP) d. Private Placement
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.
Diluted earnings per share shows dilution resulting from additional shares that may be issued for stock options or bonds that may be converted to shares of common stock in the future. True False
17. Share options are measured at a. settlement date b. grant date c. each reporting date d. financial measurement date
Which of the following statements correctly describe characteristics of preference shares? Group of answer choices A. The required return on preference equity is expected to be less than the required return from ordinary equity. B. None of the other statements are correct C. A participating preference share participates in the interest payments paid to debtholders. D. Preference shares are called “hybrid” securities because they display characteristics of both short-term and long-term debt.
Equity share are known as: Select one: a. None of the options O b. Variable income securities O c. Ordinary share O d. Preference share O e. Ordinary share and variable income securities مشم. . . 92% L (8)
How should the excess of the issue price over the par value of the preference shares subscribed be recorded? Select the correct response: as Share Premium when the subscription is collected as a Revenue when the subscription price is collected as Retained Earnings when the subscription is received as Share Premium when the subscription is received
Liability and Equity Classification Select from the option list provided the appropriate balance sheet classification for each balance sheet item below. Each choice may be used once, more than once, or not at all. Balance sheet item Classification 1. Preferred stock 2. Trade accounts payable 3. Bonds payable (due in 15 years) 4. Note payable (due in 7 months) 5. Direct costs of issuing common stock 6. Treasury stock (at cost) 7. Appropriation for contingencies 8. Common stock subscriptions receivable 9. Discount on bonds payable 10. Bonds payable issue costs Choices: Retained earnings. Capital stock. Noncurrent liabilities. Other classification. Current liabilities. Additional paid-in capital.