Which of the following scenarios does adonated capital arise? *Forgiveness of an existing loan from thegovernmentAn equipment from a manufacturerShares donated by a shareholder to thecorporationFinancial aid from the governmentWhich of the following is true about sharesplit? *It increases the total number of outstandingsharesIt increases the aggregate par value ofsharesIt decreases the retained earnings of thecorporationAll of the above.

Donated Capital. It arises when someone is giving assets, securities or treasury stocks. shares…

Answered: Which of the following scenarios does a…

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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For a corporation, equity capital comes in two forms. What are they?
Critically discuss the effect of increasing the amount paid upfront when corporations make capital purchases, focusing on the benefits and drawbacks
1. What's the difference between paid-up capital and paid-in capital, please explain detail clearly, if the company buy back their capital , this action will affect to paid-up capital and paid-in capital in same amount or not. 2. Does the unissued stock of the company always equal to autorized stock minus issued stock.
Matching Type. Choose the correct answer in the box provided. It entitles an employee to receive cash which is equal to the excess of market value of the entity's share over a pre-determined price for a stated number of shares. * These are actually deferred cash dividends. * It is a kind of appropriation for retained earnings supported by the trust fund doctrine. *
o raise capital, what are the pros and cons of selling bonds, compared to issuing stock or borrowing money from a bank in terms of raising capital?
i. Critically examine the factors that necessitate the issue ofpreference shares by companies. ii. Most companies in our part of the world prefer to befinanced by ordinary capital to preference capital. Discuss
Suppose that a new government is elected and it changes the law applying to firms to:• Allow dividend payments to be tax deductible• Stop interest expense on debt from being tax deductibleHolding other factors constant, and assuming that firms seek to maintain an optimal capital structure in accordance with trade-off theory, what would you expect to happen to the debt ratio of a firm with both equity and debt in its capital structure?a. An increase in the debt ratiob. A decrease in the debt ratioc. The debt ratio would be unchangedd. The debt ratio would doublee. None of the above or it is not possible to say
the effects of increasing the amount paid upfront when corporations make capital purchases with a focus on the benefits and the drawbacks.
Interpretation No. 46R relates to the issue of whether an investing firm is the primary beneficiary in a variable-interest entity. When is an entity classified as a variable interest entity? Starting with free cash flows from operations, discuss how an analyst would measure free cash flows to common equity shareholders.
How does attracting equity capital easier for a corporation?
Mf4. All of the following are advantages of a stock dividend distribution to shareholders on account as of ex-dividend date except? a. preserves cash balances of the firm to be used for other investment opportunities b. decrease in share price may attract new investors to raise additional capital c. bonus share distribution dilutes the share price d. not treated as a taxable event for investors and shareholders until sold e. none of the above
If a company sells new shares of stock to raise money, this will result in a ____ to the contributed capital accounts. A.Debit B.Credit

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