Which of the following transactions will not have a direct effect on a company's Retained Earnings account? * Acquisition of Treasury Share at cost Higher than Ordinary Share Capital Fair Value Exchange of Building for an Equipment where the fair value of the building exchanged is lower than the fair value of the equipment acquired Declaration and Issuance of Small Stock Dividend Declaration and Issuance of Large Stock Dividend

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following transactions will not have a direct effect on a company's Retained Earnings account? *

Acquisition of Treasury Share at cost Higher than Ordinary Share Capital Fair Value

Exchange of Building for an Equipment where the fair value of the building exchanged is lower than the fair value of the equipment acquired

Declaration and Issuance of Small Stock Dividend

Declaration and Issuance of Large Stock Dividend

In auditing the retained earnings, the following items does not concern the auditor even if it was not approved by the Board of Directors. *

Issuance of convertible debt secutiries

Issuance of redeemable preferred shares

Changes in re9tained earnings due to closing of net income

Declaration of 20% share dividends

 

Total shareholder's Equity is not affected by the transactions below, except: *

Appropriation of Retained Earnings to be used for plant expansion

Acquisition of Treasury Shares at cost lower than fair value of Ordinary Share Capital

Payment of Cash Dividends

Legal Appropriation of Retained Earnings for Treasury Shares

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