Problem 21-30 Multiple choice (AICPA Adapted)1. When collectibility is reasonably assured, the excess ofthe subscription price over the stated value of no parordinary share subscribed shall be recorded asa. No par ordinary share capitalb. Share premium when the subscription is recorded.c. Share premium when the subscription is collected.d. Share premium when the ordinary share is issued.2. The purchase of treasury ordinary sharesa. Decreases authorized ordinary share capitalb. Decreases issued ordinary sharesc. Decreases outstanding ordinary sharesd. Has no effect on ordinary shares outstanding3. When treasury shares are purchased for more than parvalue, what account or accounts shall be debited?a. Treasury shares for the par value and share premiumfor the excess of purchase price over the par value.Share premium for the purchase price.Treasury shares for the purchase price.b.c.d.Treasury shares for the par value and retained earningsfor excess of the purchase price over the par value.4. Which statement best describes the net effect on retainedearnings of the purchase and sale of treasury shares?a. Retained earnings may never be increased butsometimes decreasedb.Retained earnings may never be increased or decreasedRetained earnings may be increased but never decreasedd. Retained earnings account is not affected5. An entity issued rights to the existing shareholders topurchase unissued ordinary shares at more than parvalue. Share premium would be recorded when the rightsa. Expireb. Are exercisedBecome exercisabled. Are issued6. Toffotha.b.C-d7. TVatiabсd8. ECS€abC9.110. ed)ess ofo parded.ted.ed.n parniumlue.ningsinedes?buteasedasedrs toparghts6.Treasury shares were acquired for cash at a price in excessof par value. The treasury shares were subsequently soldthe effect on total shareholders' equity?for cash at a price in excess of acquisition cost. What is7.a.فن فيb.IncreaseDecreaseDecreaseNo effectPurchase of treasury Sale of treasuryDecreaseNo effectIncreaseNo effectwere acquired for cash at more than parvalue, and then subsequently sold for cash at more thanacquisition cost. What is the effect on share premium fromtreasury shares?Purchase of treasury Sale of treasuryIncrease IANNo effectIncreaseNo effecta. Increaseb. Decreasec. No effectd. No effectluan company8. How would a share split in which the par value per sharedecreases in proportion to the number of additionalshares issued affect share premium and retainedearnings, respectively?a.Increase and No effectb. No effect and No effectNo effect and Decreaseand DecreaseC.d. Increase9. How would a share split affect assets and shareholders'equity, respectively?a. IncreaseIncreaseandand No effectb. No effect andand Increaseand No effectc. No effect andd. Increase10. Share split is issued primarily toa. Increase the number of outstanding sharesb. Increase the number of authorized sharesc. Increase legal capitald. Induce a decline in market value per share765pes (30,000X1000 X for15 (F0,000in (30.00(250am (śm(2liamninshold.bestaby

There has been various questions which has been asked to answer and all those multiple choice…

1. When collectibility is reasonably assured, the excess of the subscription price over the stated value of no par ordinary share subscribed shall be recorded as a. No par ordinary share capital b. Share premium when the subscription is recorded. c. Share premium when the subscription is collected. d. Share premium when the ordinary share is issued. 2. The purchase of treasury ordinary shares a. Decreases authorized ordinary share capital b. Decreases issued ordinary shares C. Decreases outstanding ordinary shares d. Has no effect on ordinary shares outstanding 3. When treasury shares are purchased for more than par value, what account or accounts shall be debited?

1. When collectibility is reasonably assured, the excess of the subscription price over the stated value of no par ordinary share subscribed shall be recorded as a. No par ordinary share capital b. Share premium when the subscription is recorded. c. Share premium when the subscription is collected. d. Share premium when the ordinary share is issued. 2. The purchase of treasury ordinary shares a. Decreases authorized ordinary share capital b. Decreases issued ordinary shares C. Decreases outstanding ordinary shares d. Has no effect on ordinary shares outstanding 3. When treasury shares are purchased for more than par value, what account or accounts shall be debited?

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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Accounting type Question: Bonus shares cannot be issued out of: A. Profit and Loss a/c B. Capital Redemption reserve C. General reserve D. Dividend equalisation fund
When collectability is reasonably assured, the excess of the subscription price over the statedvalue of the no-par subscribed share capital shall be recorded asa. No share capitalb. Share premium when the subscription is recordedc. Share premium when the subscription is collectedd. Share premium when the share capital is issued
S1 The premium on the shares subscribed shall be recorded at the date of issuance of share certificate. S2 Treasury share are stated at acquisition cost and are treated as deduction from shareholders equity. a. Both statements are true b. Both statements are false c. One statement is true, and the other one is false S1 Treasury shares are not entitled to receive dividend. S2 Treasury shares may either be ordinary or preference. a. Both statements are true b. Both statements are false c. One statement is true, and the other one is false
1. The original issuance of share capital for a consideration less than its par value is least likely called as options •watered stock •Discount on share capital •Issuance below par or stated value •Reissuance of treasury share below cost 2. At what date should share certificate be issued? Subscription Authorization Full payment Retirement
Subscriptions receivable from sale of shares which are not collectible currently shall be presented asRequired to answer. Single choice. a. current assets b. deduction from the related subscribed share capital in the shareholder's equity section c. long-term investment d. other asset.
S1: The conversion of preference share capital into ordinary share capital increases the total shareholders' equity. S2: The Donated Capital account is shown as part of share premium of the reserves section of the shareholders' equity. a. Only S1 is correct b. Only S2 is correct c. Both statements are correct d. Both statements are incorrect.
1. Under IFRS 2 Share-Based Payment, what is the basis for measurement of share options? A. Fair value at the date of grant. B. Fair value at each reporting date. C. Expected fair value at the date pf exercise. D. Intrinsic value at each reporting date. 2. Under IFRS 2, Share-Based Payment, the value of the options that lapse after vesting shall A. be credited to expense during the period the options lapse. B. be credited to income during the period that the options lapse C. remain in equity. D. be converted into a liability. 3. When should the compensation expense be recorded as a result of share options granted by the enterprise to its employees?A. During the year of grant B. During the year that the options ultimately vest C. During the years when services are required to be rendered by the employees D. During the year when the option first becomes exercisable
O Mark for Review Question 7 of 30 Which is not an element of Tire Il capital O Revaluation reserve O Undisclosed reserve paid-up ordinary share capital OInvestment reserve aCCOunt
28 When treasury shares are purchased for more than the par value of the shares and the cost method is used to account for treasury shares, what account(s) should be debited? Group of answer choices share premium for the purchase price. Treasury shares for the purchase price. Treasury shares for the par value and retained earnings for the excess of the purchase price over the par value. Treasury shares for the par value and share premium for the excess of the purchase price over the par value.
How should the excess of the issue price over the par value of the preference shares subscribed be recorded? Select the correct response: as Share Premium when the subscription is collected as a Revenue when the subscription price is collected as Retained Earnings when the subscription is received as Share Premium when the subscription is received
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…
43 The purchase of treasury share does not affect Group of answer choices the amount of share issued. total assets. the amount of share outstanding. total shareholders’ equity.