Which of the following statement is false in regards to Share premium? a. It will be shown under equity section in the balance sheet b. It will be credited at the time of issue of new shares along with premium c. It cannot be distributed as dividend to the shareholders d. It can be distributed as dividend to the shareholders

Q: When preference share is cumulative, preferred dividends not declared in a period are  a. never paid…

A: Answer: When preference share is cumulative, preferred dividends not declared in a period are…

Q: Which of the following best describes the possible result of treasury share transactions?    a. May…

A: The treasury shares are the shares which are repurchased by company from its own shares.

Q: is a correct statement below? A. Equity is the residual interest in the liabilities of the entity…

A: Option A is incorrect The correct statement is  Equity is the residual interest in the assets of the…

Q: Which of the following is False in regards to Share premium account? a. It will be shown under the…

A: THE SHARE PREMIUM ACCOUNT REPRESENTS THE DIFFERENCE BETWEEN THE PAR VALUE OF THE SHARES ISSUED AND…

Q: Which of the following statements about stock dividends is not true? Stock dividend is the only…

A: Stock dividend is the payment of dividends in form of shares instead of cash.

Q: Which of the following is false? a.   Under GAAP, companies cannot record gains on transactions…

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: Which of the following will reduce Retained Earnings? a. Declaration of a stock dividend b. Payment…

A: Retained earnings refer to the part of net income that is left over after paying all the expenses.…

Q: Accounting type Question: Bonus shares cannot be issued out of: A. Profit and Loss a/c B. Capital…

A: Bonus shares are issued by cashing in on the free reserves of the company. The assets of a company…

Q: Which of the following is NOT a characteristic of an ordinary share? a) The dividends are at the…

A: Ordinary share is a common stock which gives ownership of the company.

Q: 1. Which of the following would never affect retained earnings? a. Correction of a prior period…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: How would the declaration and subsequent issuance of a small stock dividend affect share capital and…

A: Small stock dividend means the issue of shares less than 25% of the total outstanding shares in the…

Q: Which of the following is the reason that preferred dividends declared during the period are…

A: Identify the correct option: Earnings per share (EPS): The amount of net income available to each…

Q: True or False: Dividends declared and paid result in a decrease to the common stock's account…

A:

Q: Which of the following does not appear under the heading: Capital and reserves in a company balance…

A: Capital and reserves head of the balance contains the information regarding share capitals and…

Q: The price of the new share after dividends are paid is showing as incorrect?

A: Working Note#1Compute the amount of cash needed to finance the proposed dividend:Cash…

Q: Which one of the following statements about ordinary equity is correct? a. Shareholders have a…

A: Ordinary or equity shares are the most frequent type of stock issued by a public firm to obtain…

Q: Which of the following is not true for Book Value of a share? * It depends on the balance sheet…

A: Book value of share: The book value is calculated on the basis of the book value of assets and…

Q: Which of the following statements is true when dividends are not declared on cumulative preferred…

A: Cumulative preference share means where the dividend in arrears of last  year will also be paid.…

Q: When non-par value shares are reacquired at a cost greater than their average issue price and…

A: Stock that has no par value is known as no-par value stock. The price that investors are ready to…

Q: Which of the following is true of a stock dividend?A. It is a liability.B. The decision to issue a…

A: Dividend is the part or share of profit that is being distributed to the shareholders. It can be in…

Q: Which of the following statements is false? a. the common stock account has a credit balance. b. the…

A:

Q: 8. How would total stockholders' equity be effected by the declaration of each of the following?…

A: Stockholders' equity is the amount of funds raised from the shareholders of the entity. It includes…

Q: Which statement is incorrect? * a. On repurchase of treasury shares, no gain or loss is recognized.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following statements is not true about preferred stock? A.The rate of dividend is…

A: The term "stock" refers to the ownership or equity of a firm. The two categories of equity are…

Q: The Share Premium-Ordinary account represents the amount of legal capital. O is reported as part of…

A: Shareholder's EquityThe amount available to the shareholders in the company is called shareholder's…

Q: Choose the incorrect statement below: A. Retained earnings are the funds

A: Option d is incorrect

Q: If a preferred stock is of the cumulative type, a. dividends cannot be passed if they are earned.…

A: Preferred stock carry fixed rate of dividends that must be paid each year.

Q: Which of the following statements is incorrect?

A: Capital of the company is divided into units of small denomination and each unit is called a share.…

Q: Which of the following is not a method that may be used to account for treasury shares? a. Cost…

A: The treasury shares are the shares which are reacquired by the issuing company from the…

Q: Which of the below statements is false for equity?  A. Limited liability B.Residual claim on firm…

A: Equity holders are one among the stakeholders of a company. Equity holders or shareholders are the…

Q: Which of the following statements is false?   A The declaration of a dividend may not result in a…

A: Dividend: Distribution of company profits to the shareholders ( Real owners of the company ) is…