Answered: The purchase of treasury share does not…

The purchase of treasury share does not affect Group of answer choices the amount of share issued. total assets. the amount of share outstanding. total shareholders’ equity.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 26GI: What additional disclosures about preferred and common shares does the FASB require?

See similar textbooks

Related questions

Q: appear under the heading capital and reserves in a company balance sheet? A. Ordinary share…

A: The following appear under the heading capital and reserves in a company balance sheet: Ordinary…

Q: Which of the following does not affect accumulated profits? A. Stock dividend B. Share split C.…

A: The share split is a method of decreasing the par value of the stock by increasing the number of…

Q: 13. How much should be the correct debit to retained earnings for the share dividends? The following…

A: Stock dividend refers to the distribution of profit in the form of shares of the company. The shares…

Q: Choose the correct classification for the following accounts: A forfeited shares account; A…

A: When an amount which is due to shareholder is not paid by them the shares held by the shareholder is…

Q: 5. How is the treasury share account presented in the Statement of Financial Position? a. deducted…

A: ANSWER ÷ (b) deducted from shareholder's equity

Q: When treasury shares are purchased for more than the par value of the shares and the cost method is…

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

Q: Which of the following items is not presented under the equity section of the statement of financial…

A: The equity section contains the information that records about resources that owners invested and to…

Q: Which one or more of the following would you not include within the heading Equity and Reserves in a…

A: Equity and reserves that are shown under statement of financial position means all amount…

Q: 8. Which of the following is NOT a characteristic of common shares? A. Pre-emptive rights B. Voting…

A: Common Shares: These are shares issued to the owner as proof of ownership in the company. The amount…

Q: Which of the following is False in regards to Share premium account? a. It will be shown under the…

A: THE SHARE PREMIUM ACCOUNT REPRESENTS THE DIFFERENCE BETWEEN THE PAR VALUE OF THE SHARES ISSUED AND…

Q: 1) Maharashtra Transport Co. Invited Application for 40000 shares of Rs.100 each at a discount of…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Accounting type Question: Bonus shares cannot be issued out of: A. Profit and Loss a/c B. Capital…

A: Bonus shares are issued by cashing in on the free reserves of the company. The assets of a company…

Q: Dividends in arrears on cumulative preference share a. are considered to be a non-current liability…

A: Solution: Dividends in arrears on cumulative preference share "Should be disclosed in the notes to…

Q: Which of the following would result from watered shares? overstated capital understated assets…

A: solution : Which of the following would result from watered shares? Correct answer is overstated…

Q: Dividends declared on redeemable preference shares are recognized * O By a debit to retained…

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

Q: PROBLEM 2: JKL Corp. reported the following amounts in the shareholders' equity section of its…

A: Stockholders' equity includes the capital contributed by the shareholders and the amount of profit…

Q: Determine if this shall result in recognition of liabilities 6. Declaration of cash dividends on…

A: Cumulative preference shares are those preference shares whose dividend gets accumulate if any year…

Q: Determine if this shall result in recognition of liabilities 7. declaration of share dividends on…

A: The share dividend is a method of capitalizing on retained earnings. Generally, the large share…

Q: 21. What does IAS 32 provide as regards to the gain from sale of treasury shares? Group of answer…

A: As per IAS 32, when the treasury stock is bought or sold, an entity should not record any gain or…

Q: Which of the following does not appear under the heading: Capital and reserves in a company balance…

A: Capital and reserves head of the balance contains the information regarding share capitals and…

Q: Which item would NOT form part of the shareholders' equity of a company on the statement of…

A: Shareholders' equity is the amount payable by the business to the owner of the business.

Q: remium on issue of shares is a revenue expenditure

A: Premium on issue of shares is not a revenue expenditure.

Q: deemable preference shares will be shown under: a. Equity in the statement of financial position b.…

A: Solution: Redeemable preference shares will be shown under " Equity in the statement of financial…

Q: ontributed capital does not include a. Preference shares b. Share premium on preference shares c.…

A: Solution: Contributed capital does not include "Capital accumulated by retention of earnings".

Q: Determine if this shall result in recognition of liabilities 8.Declaration of property dividends on…

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

Q: Should preference shares be disclosed as equity or as debt?

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

Q: 4. An ordinary share a. Is an equity instrument that is subordinate to all other classes of equity…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Choose the best option Question# 33 Which of the following does not appear under the heading…

A: Capital and reserves head of the balance contains the information regarding share capitals and…

Q: Which of the following is not a method that may be used to account for treasury shares? a. Cost…

A: The treasury shares are the shares which are reacquired by the issuing company from the…

Q: 20.Which of the following items is not a sub-category of shareholders’ equity? a. Share capital b.…

A: Shareholder equity means the amount that belong to the owner of the company i.e. share holder.…

Q: Which of the following can not be used for redemption of preference shares? A. Insurance Fund B.…

A: The objective of the question is to identify which among the given options cannot be used for the…

Question

The purchase of treasury share does not affect

Group of answer choices

the amount of share issued.

total assets.

the amount of share outstanding.

total shareholders’ equity.

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

Determine if this shall result in recognition of liabilities 7. declaration of share dividends on ordinary shares a. yes b. no
Determine if this shall result in recognition of liabilities 8.Declaration of property dividends on ordinary shares. a. yes b. no
What is prefences share captial? What is the journal entries mean?
8. Which of the following is NOT a characteristic of common shares? A. Pre-emptive rights B. Voting rights C. Transferability of shares D. Preference in liquidation
t26
5. Dividends in arrears on cumulative preference share a. are considered to be a non-current liability b.Only occur when preferred dividends have been declared c. are considered to be a current liability d.Should be disclosed in the notes to the financial statements
Which of the following can not be used for redemption of preference shares? A. Insurance Fund B. Workmen's Compensation Fund C. General Reserve D. Profit Prior to Incorporation
H1. Account
21. What does IAS 32 provide as regards to the gain from sale of treasury shares? Group of answer choices a. It shall be recognized in profit or loss. b. It shall be credited to share premium. c. It shall be credited to share capital. d. It shall be credited to retained earnings.
20.Which of the following items is not a sub-category of shareholders’ equity? a. Share capital b. Retained earnings c. Dividends payable d. Share premium
Which of the following does not affect accumulated profits? A. Stock dividendB. Share splitC. Conversion of preference share to ordinary shareD. Treasury share transaction
Accounting type Question: Bonus shares cannot be issued out of: A. Profit and Loss a/c B. Capital Redemption reserve C. General reserve D. Dividend equalisation fund