Which of the following may not affect retained earnings or earned capital? Correction of prior period errors Gain on reissuance of treasury shares Loss on reissuance of treasury shares Profit or loss for the period

Which of the following may not affect retained earnings or earned capital? Correction of prior period errors Gain on reissuance of treasury shares Loss on reissuance of treasury shares Profit or loss for the period

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Why were dividends not included under the liabilities and equity section?

A: Dividends are the payments made to the shareholders of the entity as a return for making investment…

Q: Accounting: type question:, Which of the following items is not taken in profit and loss…

A: Profit and loss appropriation accounts show the distribution of profit and loss. It is prepared…

Q: Where are changes in fair value for available for sale securities reported? Group of answer choices…

A: The question is asking about the reporting location for changes in the fair value of…

Q: For fi nancial assets classifi ed as trading securities, how are unrealized gains and lossesrefl…

A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…

Q: How would you describe a change that a company makes from the equity method to the fair-value method…

A: Definition: Equity method: Equity method is the method used for accounting equity investments…

Q: Which of the following is NOT a component of Accumulated Other Comprehensive Income? A. Gains or…

A: Other comprehensive income (OCI) includes any unrealized gains or losses from sources of funds from…

Q: which of the following is true of the effect of net loss on financial statements?

A: The objective of this question is to understand the impact of a net loss on a company's financial…

Q: Which statement cash of flows shows the inflows and outflows of the issue and repurchase of stock?…

A: Cash flow is a statement that provide data regarding cash inflow and cash outflow of the company…

Q: The statement of stockholders equity does not include -retained earnings -equity method investments…

A: The statement of stockholders equity is part of the financial statement balance sheet. It depicts…

Q: Why stock losses do not occur in a periodic system

A: Periodic Inventory System - Under periodic inventory system cost of goods sold will be calculated at…

Q: Which of the alternatives results from the accrual of interest: a.Increase in liabilities and…

A: Expenses are accrued when these are incurred but are not paid. Due to the accrual concept, all the…

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: If a company uses a non-GAAP fi nancial measure in an SEC fi ling, then the companymust:A . give…

A: Solution:- If a company uses a non-GAAP financial measure in an SEC filing, then the company must…

Q: 1. What is the general trend of the company’s current assets? Did you observe any account with…

A: "Since you posted a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: When a business has Available-for-Sale Securities, the account Unrealized Loss on Available-for-Sale…

A: Available-for-sale securities Available-for-securities are referred to as equity or debt security…

Q: Which of the following is not an undistributable reserve? A. Share premium account B.…

A: Undistributable reserve means reserves which are not available for distribution to share holders.…

Q: It is included in total as a component of shareholders’ equity.

A: Minority interest is that part of the net assets which is not owned by the parent company. It is…

Q: The receipt of dividends from long-term investments in stock in classified as a canh infow from…

A: The cash flow statement keeps the record of cash inflow or outflow from the business under various…

Q: Under IFRS, the unrealized loss on trading investments should be reported: a. as part of other…

A: Option a: This option is incorrect because unrealized loss on trading investments is a part of other…

Q: For fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl…

A: Securities held to maturity (HTM) are bought for ownership before they expire. For instance, the…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Which of the following may not affect retained earnings or earned capital?

Correction of prior period errors

Gain on reissuance of treasury shares

Loss on reissuance of treasury shares

Profit or loss for the period

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1Basic Information

VIEW

Step 2 Solution

VIEW

Trending now

This is a popular solution!

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

The cost of retained earnings is less than the cost of ordinary shares because of *a. the issuance cost.b. agency costs of free cash flow.c. the taxation on earnings.d. the trust fund doctrine.
2. Which of the following is not included in comprehensive income? a. gains on reissuance of treasury shares b. translation differences related to foreign operations c. fair value gains or losses on FVOCI securities. d. fair value gains or losses on FVPL securities.
Why are unrealized gains and losses on trading securities reported in the incomestatement?
What is Return to Equity? Interest paid on debt Revenue minus Costs Only Retained Earnings All of the Above
For fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl ected in shareholders’ equity?C . Th ey are a component of accumulated other comprehensive income.
A major difference between IFRS and GAAP relates to the Revaluation surplus account. Retained earnings account. Share capital account. Share premium account.
Describe the following 1. Unrealized gains or losses on derivatives held on cash flow hedges. 2.Unrealized gains or losses on investment available for sale. 3.Dividends declared in a particular period. 4.Gain or losses on foreign exchange translations. 5.Recording of previous periods errors in revenue and expenditure after preparation of final accounts in the current periods.
Which of the following is shown on a statement of cash flows? A share dividend A share split An appropriation of retained earnings None of these answer choices are correct
Accumulated Other Comprehensive Income in the shareholders' equity section of the balance sheet reflects changes in the fair value of securities for which type of securities?
Provide answer this question
With regard to cash dividends, an entry is not made on the A.date or payment and date of declaration. B.date of record. C.date of declaration. D.date of payment.
Why are unrealized gains and losses on available-for-sale securities not reported in theincome statement, but instead are reported in other comprehensive income, and thenshown in accumulated other comprehensive income (AOCI) in the balance sheet?