When shares are subscribed, which of the following statements is/are correct?O A. A Shareholders' Equity account called Subscription Receivable is used to record the par-value of the shares issued.OB. The Share Capital account is credited when subscription contract is signed and a down payment is received.OC. The Share Premium account is credited when the subscription price is higher than the parvalue.O D. All of the above

Subscription of shares means a promise by the investors to buy the new shares issued by the company…

Answered: When shares are subscribed, which of…

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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1. When an entity issued bonds payable with detachable share warrants, how will share premium be computed if the share warrants are exercised by the bondholders? (Choose an answer and explain why) a. It is the balance of the share warrants outstanding. b. It is the sum of the share warrants outstanding and total par or stated value of the shares issued. c. It is the difference between the proceeds received based on the exercise price and the total par or stated value of the shares issued. d. It is the difference between the proceeds received based on the exercise price plus the share warrants outstanding and the total par or stated value of the shares issued.
ESPAÑOL INGLÉS FRANCÉS Undeclared dividends (in arrears) to cumulative preferred stockholders must be filed to. in the notes to the financial statements. b. as an increase in current debts. С. as an increase in long-term debt. Enviar co Guardado Contribuir
A stock's par value refers to the: O A. Value assigned per share by the corporate charter. O B. Market value of the stock on the date of the financial statements. OC. Maximum selling price of the stock.O D. Issue price of the stock.
please step by step answer.
The secondary market is the market in which: Select one: a. The sale proceeds of a trade flow to the issuer of the security. b. Publicly held firms issue new shares of stock. O c. One shareholder sells securi ties to another shareholder. d. Only bonds or other debt securities are sold.
Which of the following formulas is correct regarding the different status of shares of stock: authorized shares, issued shares, outstanding shares, and treasury shares? a. Issued - Treasury = Outstanding %3D b. Issued + Treasury - Authorized C. Authorized + Treasury = Issued d. Issued + Outstanding + Treasury Authorized
7. Basic earnings per share will serve as a guide to investors as to the attractiveness of ordinary shares as an investment. TRUE FALSE 8. Book value per share is computed by dividing the net assets to the total number of shares outstanding. TRUE FALSE 9. Which of the following is entitled to dividends? Total outstanding liability Total authorized shares Total shares issued Total shares issued, net of treasury shares
ESPAÑOL INGLÉS FRANCÉS As of the date of the financial statements, the number of common shares issued will exceed the number of shares outstanding as a result of to. the declaration of a stock dividend. b. the declaration of a division or division of shares (stock split). С. the purchase of shares in portfolio (treasury stock). Enviar comenta. MacBook Air
Please answer this one
when shares are subscribed at par value , the debit to subscription receivable should be at
The shares of stock sold to investors are Select one: a. Treasury shares. b. Authorized shares. c. Issued shares. d. Outstanding shares. A firm that sold one share of $1 par value common stock for $10 would Select one: a. Debit common stock for $1. b. Debit common stock for $10. c. Credit common stock for $1. d. Credit common stock for $10. For a bond issued at par, the cash received upon issue equals the present value of the bond’s Select one: a. Principal repayment minus the interest payments. b. Principal repayment and interest payments. c. Principal repayment. d. Interest payments.
When computing the basic earnings per share in a structure where there are cumulative preference shares, the net income to ordinary shares is equal to the actual net income of the company a. Add current dividend for preference shares whether declared or not b. Less current dividend for preference shares whether declared or not c. Less current dividend for preference shares only when declared d. Less current and previous dividend for preference shares declared or not e. Add current dividend for preference shares only when declared

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