Gain on sale of treasury shares should be credited to: * A. Share Premium from treasury shares B. Accumulated profits C. Share capital D. None of the above
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- Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.1. Gains on sale of treasury shares (cost method) should be credited to •Share premium – treasury •Ordinary share •Gain on sale of treasury •Retained earnings 2. When share without par value and stated value are sold, the proceed should be credited to a. Profit or Loss b. Retained Earnings c. Share Capital d. Share premiumWhen the selling price of treasury shares is greater than its cost, the company credits the difference to a.Gain on Sale of Treasury Shares. b.Share Premium–Treasury. c.Treasury Shares. d.Share Premium–Ordinary.
- Which of the following does not affect accumulated profits? A. Stock dividendB. Share splitC. Conversion of preference share to ordinary shareD. Treasury share transactionWhich of the following affects the total Shareholders’ Equity? a. Declaration of a scrip dividend b. Declaration of share split c. Appropriation of retained earnings d. Retirement of treasury sharesContributed capital does not include a. Preference shares b. Share premium on preference shares c. Capital accumulated by retention of earnings d. Ordinary shares
- Sale of treasury shares at less than cost shall be charged to * a. Loss on sale of treasury shares to be reported as other expense b. Retained earnings and then additional paid in capital from treasury share transactions c. Additional paid in capital from treasury share transactions and then retained earnings d. Share premium from original issuance, additional paid in capital from treasury share transactions and then retained earningsWhich of the following is not a method that may be used to account for treasury shares?a. Cost methodb. Par value methodc. Retained earnings methodd. Constructive retirement methodCIf shares are issued for a non-cash asset, the share should be recorded at? a. Zero b. Fair market value c. Par or stated value d. Cost
- rdinary share capitalOrdinary share capitalWhich of the following items would not form part of the shareholders' equity of a company on the statement of financial position? Select one: a. Retained profits b. Trade payables c. Share premium d. Ordinary share capitalUnder the cost method, the journal entry to record the repurchase of a treasury share for more than the share's par value will include a debit to O Share Premium-Treasury Shares for the excess of the cost over par value O Accumulated Profits for the excess of the cost over par value O Treasury Shares for the cost of treasury share Share Premium-Treasury Shares for the cost of treasury share21. What does IAS 32 provide as regards to the gain from sale of treasury shares? Group of answer choices a. It shall be recognized in profit or loss. b. It shall be credited to share premium. c. It shall be credited to share capital. d. It shall be credited to retained earnings.