Which statement is true regarding the new Companies Act 71 of 2008? Select one: a. Companies are no longer allowed to issue par value shares. b. Companies are now expected to be managed by shareholders. c. Companies are no longer allowed to issue capitalization shares. d. Companies are only permitted to issue redeemable Preference share

Which statement is true regarding the new Companies Act 71 of 2008? Select one: a. Companies are no longer allowed to issue par value shares. b. Companies are now expected to be managed by shareholders. c. Companies are no longer allowed to issue capitalization shares. d. Companies are only permitted to issue redeemable Preference share

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please assist by providing the correct answer for 1.1,1.2 and 1.3 1.1 There are limitations on the issuing and redemption of redeemable shares. Which ONE of the following is NOT an actual limitation? Select one: a. Redeemable shares cannot be issued if the only shares that the company has issued are redeemable shares. b. Redeemable shares can only be redeemed if they are fully paid-up. c. When redeeming shares, the company must pay fully for them at the time of redemption, unless the terms of redemption provide for a later date. d. Private companies can only issue redeemable shares if authorised by their articles. 1.2 Identify the statement that is correct regarding the paid up capital. Select one: a. If any of the shareholders has not paid amount on calls, such an amount may be called as ‘calls in arrears’. Therefore, paid up capital is equal to the called-up capital plus call in arrears. b. It is that portion of the called up capital which has been actually received from the…
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
If a corporation fails to declare a dividend on cumulative preferred stock in a given year, the dividends in arrears accumulate from period to period. the dividends in arrears are recorded as liabilities. the common shareholders may still receive dividends in the current year. all of these options apply.
Which of the following statements is true?a. The outstanding number of shares is the maximum number of shares that can beissued by a corporation.b. The shares that are in the hands of the stockholders are said to be outstanding.c. It is very unlikely that corporations will have more than one class of stock outstanding.d. Preferred stock is stock that has been retired.
Which of the following is FALSE regarding preferred stock Preferred dividends are generally fixed A company is NOT allowed to omit the preferred dividends and still pay dividends to the common stockholders Preferred stockholders have the right to elect a pro-rata portion of the board of directors Preferred stock trades in the secondary market between investors Most preferred stock is cumulative, meaning that if the company is behind on paying preferred dividends, it must be brought up to date before dividends can be paid to the common stockholders.
Which of the following statements about preferred shares is inaccurate? Select one: a. Preferred shares carry credit ratings. b. In the event of liquidation of a firm’s assets, preferred shareholders are paid out before common shareholders. c. Preferred share dividends are always cumulative. d. Preferred shares are often callable and puttable. e. Preferred share dividend income from another Canadian corporation is tax-exempt.
all of the following are true about the issuance of non-voting common stock except a. it has been issued when the corporation wishes to raise capital through the sale of common stock but does not want to relinquish its voting control o b. it has been issued as a defense against an unfriendly takeover c it tends to result in the dilution of voting rights of current stockholders od. it tends to result in unequal voting rights among the shareholders
A company may not issue its shares_________. Select one: a. directly to investors b. through an investment institution that specializes in market the marketing of shares c. only after receiving the full issue value d. only at par value of shares
(short answer) If you were the Chief Financial Officer of a public company that was issuing new common stock, which type of underwiring would you prefer, and why?
Sl acquired shares that are not part of a held for trading portfolio. The shares are listed on a public stock exchange such that fair value information is readily available. Sl management would like to report the shares at fair value on the SFP, however, management does not want holding gains and losses to result in income volatility. How should Si management classify the shares? SI reports under IFRS. Multiple Choice FVTPL FVTOCI Amortized cost Cost
Which of the following statements is false? a. one of the disadvantages of incorporation is the problem of "double taxation" b. the number of issued shares is equal to the total shares sold to date minus those held in treasury stock c. common stock is part of stockholders equity d. when the stock has a par value, the amount recorded in the common stock account is the par amount times the number of shares issued
Which of the following statements is NOT correct about the rights granted to common stockholders? Group of answer choices a. Stockholders may transfer their right to vote to a second party by means of a proxy. b. Dividends due to common stockholders are cumulative. c. Common stockholders have the right to elect a firm's directors. d. In large, publicly traded firms, managers typically have some stock but their personal holdings are generally insufficient to win voting control.