Treasury shares, Interest, Dividends, Losses and Gains 4. Which of the following statement is correct? a. Entity A reacquires its own shares for P10,000. The shares were originally issued for 94,000. Entity A recognizes a loss of P6,000. b. Gains and losses arising from a financial liability are recognized in directly in equity. c. Entity A declares dividends. Entity A will recognize the amount of the dividends as expense in profit or loss. d. Entity A settles a liability with carrying amount of P100,000 for P85,000. This transaction results to a P15,000 gain that is recognized in profit or loss.

Treasury shares, Interest, Dividends, Losses and Gains 4. Which of the following statement is correct? a. Entity A reacquires its own shares for P10,000. The shares were originally issued for 94,000. Entity A recognizes a loss of P6,000. b. Gains and losses arising from a financial liability are recognized in directly in equity. c. Entity A declares dividends. Entity A will recognize the amount of the dividends as expense in profit or loss. d. Entity A settles a liability with carrying amount of P100,000 for P85,000. This transaction results to a P15,000 gain that is recognized in profit or loss.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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