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…

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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demonstrate an understanding of accounting in corporations. describe types of corporations (e.g., public, private, not-for-profit) and classes of shares (e.g., common, preferred, voting); record transactions related to common and preferred stocks (e.g., issue, buy back, subscriptions); record transactions related to the declaration and distribution of dividends compare the impact of various forms of dividend distribution (e.g., cash dividends, stock dividends, stock splits) on shareholders’ equity;
Which of the following is the most important audit consideration when examining the stockholders’ equity section of a client’s balance sheet?a. Changes in the capital stock account are verified by an independent stock transfer agent.b. Stock dividends and stock splits during the year under audit were approved by the stockholders.c. Stock dividends are capitalized at par or stated value on the dividend declaration date.d. Entries in the capital stock account can be traced to resolutions in the minutes of meetings of the board of directors.
Which statement is true? All of a company’s identifiable assets and liabilities appear on the balance sheet. The financial statements are linked with each other. The basic financial statements reflect a complete, accurate, portrayal of the financial performance of a company. The difference between a company’s assets and liabilities should be equal to the market value of the shares owned by investors.
Which of the following represents one of the basic rights of stockholders? a. Stockholders may sell their stock back to the company if they wish. b. Stockholders may authorize a business contract on behalf of the corporation. c. Stockholders may determine at what price the company issues stock. d. Stockholders may participate in management by voting on corporate matters.
You have now learned about the following financial statements issued by corporations: balancesheet, income statement, statement of retained earnings, statement of stockholders’ equity, andstatement of cash flows. Listed below are various items frequently of interest to a corporation’sowners, potential investors, and creditors, among others. You are to specify which of the abovecorporate financial statements, if any, reports the desired information. If the listed item is notreported in any formal financial statement issued by a corporation, indicate an appropriate sourcefor the desired information.a. Number of shares of stock outstanding as of year-end.b. Total dollar amount of cash dividends declared during the current year.c. Market value per share at balance sheet date.d. Cumulative dollar effect of an accounting error made in a previous year. e. Detailed disclosure of why the number of shares of stock outstanding at the end of the cur-rent year is greater than the number of shares…
Is a company's net income INDIRECTLY included in the company's balance sheet? Please explain.
Question 1 Which of the following would NOT be included as equity in a corporate balance sheet? Retained earnings Paid in capital Cash Ordinary shares
Please i need all questions to be answered.
Which of the following statements related to dividends is incorrect? O Dividends must be paid in the period declared. O Before declaring a dividend, management must consider availability of funds to pay the dividend. O Distributions to owners must be in compliance with the state laws. O Dividends must be declared by the Board of Directors.
29. Which statement is false? a. The balance sheet of an entity purports to show the true value of the entity b. The balance sheet should show a company's liquidity c. The balance sheet reflects the financial capital of a company d. The balance sheet summarizes the financial position of an entity at a point in time
Describe the accounting for bonds payable, including bonds issued at face amount, bonds issued at a discount, and bonds issued at a premium? Describe how bonds are reported on the balance sheet? Describe how the times interest earned ratio is used to evaluate a company’s financial condition? Describe the advantages and disadvantages of the corporate form of business ownership? Describe the characteristics of corporate stock, the classes of stock, and the accounting entries for stock issuance? Search entries or author .
Which of the following is not an input in a company's WACC? O Long-term debt. Preferred stock Retained earnings Accounts payable

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