Which of the following statements regarding dividends in arrears is false? Question options: a Total dividends in arrears is one year dividend requirement on cumulative preference share capital multiplied by the number of years in arrears. b Dividends in arrears may arise on both preference and ordinary share capital in any year the dividends are not paid. c Dividends in arrears are not a liability to a corporation until they are declared. d Dividends in arrears must be reported in the footnotes to the financial statements.

Which of the following statements regarding dividends in arrears is false? Question options: a Total dividends in arrears is one year dividend requirement on cumulative preference share capital multiplied by the number of years in arrears. b Dividends in arrears may arise on both preference and ordinary share capital in any year the dividends are not paid. c Dividends in arrears are not a liability to a corporation until they are declared. d Dividends in arrears must be reported in the footnotes to the financial statements.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 10Q

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1. The pre-emptive right of a common stockholder is the right to Choices; share proportionately in corporate assets upon liquidation. share proportionately in any new issues of stock of the same class. receive cash dividends before they are distributed to preferred stockholders. exclude preferred stockholders from voting rights. 2. In computing diluted earnings per share, interest expense on convertible bond payable should be Choices ignored Added back to net income net of tax Added back to net income at gross Deducted from net income net of tax Clear selection
It is not unusual for some company investments to carry cumulative dividend rights. Which of the following statements about the declaration of cumulative dividends is correct? A. They are paid when profits are available for that purpose B. They are paid out of capital C. They are paid in the form of a bonus issue D. They are not paid until profits reach a certain percentage
According to IFRS, once the total compensation is measured at the date of grant A. It can be changed in future periods related to a change in market conditions B. It can be changed to reflect the rise or fall in the market price of the company's ordinary shares C. A company is permitted to adjust tge number of share options expected to the actual number of instruments vested D. All of the choices are correct
Which of the following statements is true in relation to the call price of preference shares? The call price is used in computing book value per share. In the absence of call price, the liquidation value is disregarded and the par or stated value is instead used. The call price is the amount paid to preference shareholders upon redemption of preference shares during the lifetime of the entity. All of these statements are true.
When a stock repurchase occurs, which of the following is not correct?a. EPS decreasesb. Shares are repurchased then cancelledc. Investors may regard this as a tax break compared to a dividend paymentd. Costs in servicing small shareholders may be reducede. All of the above are correct
"Which of the following statement is true about ""Cumulative Stock Dividends in Arrears™? Select all correct choices, do not select all choices, incorrect choices are penalized." They are reported in the Statement of Retained Earnings They are reported in the Notes to the Financial Statements only Any missed dividends from prior years are reported as Long Term Liabilities They are paid to preferred stockholders before any payment is made to common stockholders Any missed dividend from the current year are reported as Current Liabilities
The equity method of accounting for long term Investments in shares is used by investors when: a) The investor intends to sell the shares within the next year b) The investor has significant influence over the corporation c) The investor has purchased preferred shares of the corporation d) The investor has no influence over the corporation e) None of the above
The date on which we would expect to see the price of a share fall by the value of the dividend is Select one: a. the declaration date b. the ex-dividend date c. the record date d. the payment date e. None of the above
1- Which of the following statement is the most true A) Preferred dividends in arrears are reported as current liability only if related preferred stocks are cumulative. B) A dividend payable in the form of additional shares of stock reported as current liability only when declared. C) Redeemable preferred stock should be reported as liability. D) A & B. E) None of the above. F) All of the above. 2- The Fair Value option under IAS: A) Required firms to report assets or liabilities at fair value on the balance sheet. B) The resulted unrealized gain or loss should by reported as other comprehensive income in the equity section/ BS. C) At the end of each accounting period company has the option to report assets or liability either at HC or fair value . D) A & B E) None of the above is truef. 3- under the equity method, unrealized holding gains (losses) are A. Reported as a separate component of stockholders' equity. B. Part of net income. C. Not recognized. D. Reported as other…
What is reflected in the additional paid-in capital account? a. none of the above b. Whichever is higher of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquired c. he difference between the market price and the par value when the stock was issued. d. The difference between the market price and the par value when the stock was reacquired e. Whichever is lower of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquired
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
1.Which statement is incorrect? * a. On repurchase of treasury shares, no gain or loss is recognized. The purchase price would become the cost of treasury shares. b. On reissuance of treasury shares, the difference between the cost and reissue price of treasury shares is debited or credited to share premium rather than to profit or loss. c. If treasury shares are retired above par, the difference between the cost and the par value is automatically charged to retained earnings. d. Treasury shares can be subjected to share split and can be re-issued as share dividends. e. none of the above 2. Which statement is incorrect? a. Dividends out of retained earnings is limited to the balance of unappropriated retained earnings, except for share dividends. b. Cash dividends are paid on the basis of the number of shares issued less the number of treasury shares. c. Property dividends payable shall be measured based on fair value of the property on the date of declaration, reporting and…

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a	Total dividends in arrears is one year dividend requirement on cumulative preference share capital multiplied by the number of years in arrears.
b	Dividends in arrears may arise on both preference and ordinary share capital in any year the dividends are not paid.
c	Dividends in arrears are not a liability to a corporation until they are declared.
d	Dividends in arrears must be reported in the footnotes to the financial statements.