What is the accounting for treasury share transactions? a. On repurchase or re-issuance of previously purchased own shares, no gain or loss is recognized. b. Treasury shares are accounted for as financial assets. c. On re-issuance of treasury shares, a gain or loss is recognized equal to the difference between the previous repurchase price and the re-issuance price. d. On repurchase of treasury shares, a gain or loss is recognized equal to the difference between the amount at which the shares were issued and the repurchase price for the shares. .
What is the accounting for treasury share transactions? a. On repurchase or re-issuance of previously purchased own shares, no gain or loss is recognized. b. Treasury shares are accounted for as financial assets. c. On re-issuance of treasury shares, a gain or loss is recognized equal to the difference between the previous repurchase price and the re-issuance price. d. On repurchase of treasury shares, a gain or loss is recognized equal to the difference between the amount at which the shares were issued and the repurchase price for the shares. .
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. What is the accounting for treasury share transactions?
a. On repurchase or re-issuance of previously purchased own shares, no gain or loss is recognized.
b. Treasury shares are accounted for as financial assets.
c. On re-issuance of treasury shares, a gain or loss is recognized equal to the difference between the previous repurchase price and the re-issuance price.
d. On repurchase of treasury shares, a gain or loss is recognized equal to the difference between the amount at which the shares were issued and the repurchase price for the shares.
.
2. If a no-par value share is issued...
a. The value of each share is automatically ₱5.
b. The corporation is automatically in violation of its state charter.
c. There is no legal capital.
d. The entire proceeds is considered as legal capital.
.
3 Which of the following statements relating to bonds is incorrect?
a. None of the choices
b. A bond’s face value is the amount the issuer must pay to the bondholder at maturity
c. The owner of a registered bond is the person to whom interest payments are mailed.
d. A bond is a debt instrument giving the issuer flexibility as to maturity date.
e. A bond will typically sell at a discount when its nominal rate is less than the current market rate of interest
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