Which of the following statements are correct?1. A company's authorised share capital must be included in its published statement of financial position as part of shareholders' funds.2. If a company makes a bonus issue of ordinary shares, the total shareholders' interest (share capital plus reserves) remains unchanged.3. A company's statement of changes in equity must include the proceeds of any share issue during the period.4. A company must disclose its significant accounting policies by note to its financial statements.A. O3 and 4 onlyВ.2, 3 and 4С.1 and 3 onlyD.1 and 2 only

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

Answered: Which of the following statements are…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 14MCQ

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Similar questions

Which of the following does not appear under the heading: Capital and reserves in a company balance sheet? A. Ordinary share capital B. Debentures C. Share premium account D. Non- voting shares.
The par value of common stock represents a. the estimated fair value of the stock when it was issued. b. the liability ceiling of a shareholder when a company undergoes bankruptcy proceedings. c. the total value of the stock that must be entered in the issuing corporation’s records. d. the amount that must be recorded on the issuing corporation’s record as paid-in capital.
Treasury stock should be reported in the financial statements of a corporation as a(n) Oa. investment Ob. liability Oc. current asset Od. deduction from stockholders' equity
Which one or more of the following is a company obliged to disclose when preparing financial statements for publication: Depreciation written off or Particulars as well as the impact of any change in accounting policy or Issued capital of the company or Final dividend proposed.
When a client company does not maintain its own capital stock records, the auditors should obtain written confirmation from the transfer agent and registrar concerninga. Restrictions on the payment of dividends.b. The number of shares issued and outstanding.c. Guarantees of preferred stock liquidation value.d. The number of shares subject to agreements to repurchase.
Which one or more of the following would you not include within the heading Equity and Reserves in a company’s Statement of financial position: Revaluation reserve or Share premium account, or Redeemable Preference Shares or Dividend declared.
Which of the following statement is correct about publicly traded companies? O A. Publicly traded companies can choose whether or not they wish to release periodic financial statements. O B. Statement of sources and uses of cash is one of the financial statements that all publicly traded companies have to file with the SEC. C. Publicly traded companies produce financial statements to increase intrinsic value of their firms. O D. Publicly traded companies must follow the rules and format set out in the Generally Accepted Accounting Principles (GAAP) when creating financial statements.
Describe the types of shares held by the company. What can you say about the history of company share issues, retained earnings and payment of dividends? Are they following any specific policies for these? (Please correct answer)
If a companys board of directors designates a portion of earnings for a particular purpose due to legal or contractual obligations, they are designated as ________. A. retained earnings payable B. appropriated retained earnings C. cumulative retained earnings D. restricted retained earnings
What accounting policies are disclosed in the notes accompanying a companys financial statements? Why is this disclosure important?
. In auditing a company's Shareholders' Equity, the proceeds from the sale of donated capital should be accounted as: * Share Warrants under Additional Paid in Capital Included in the Other Comprehensive Income Section of the financial position Accounted as part of a company's reserves Part of Share capital under Donated Capital Account Part of retained earnings unappropriated
Explain how earnings per share should be computed and how the information should be disclosed in the corporation's financial statements.

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