when shares are issued at a premium the value of the share premium should be :
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when shares are issued at a premium the value of the share premium should be :
a- taken to the
b- shown under current liabilities in the balance sheet
c- shown under capital & reserves in the balance sheet
d- taken to the trading account
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- Stockholders equity consists of which of the following? A. bonds payable B. retained earnings and accounts receivable C. retained earnings and paid-in capital D. discounts and premiums on bond payableStock subscriptions receivable are listed as __________ on the balance sheet. (a) current liabilities (b) current assets (c) long-term assets (d) contra-stockholders equityStockholders’ equity consists of which of the following?A. bonds payableB. retained earnings and accounts receivableC. retained earnings and paid-in capitalD. discounts and premiums on bond payable
- Indicate how each of the following accounts should be classified in the equity section.(a) Share Capital—Ordinary. (e) Share Premium—Treasury.(b) Retained Earnings. (f) Share Capital—Preference.(c) Share Premium—Ordinary. (g) Accumulated Other Comprehensive Income.(d) Treasury Shares.Match each of the following terms with the correct definition: a. additional paid-in capitalb. issued and outstandingc. retained earningsd. treasury stocke. authorized share capitalf. par value Correct Definitions:A. The price at which each share is recorded in the company’s booksB. Held by investorsC. Cumulative amount of profits that have been plowed backD. The difference between the amount of cash raised by an equity issue and the par value of the issueE. The maximum number of shares that can be issued without shareholder approvalF. The amount that the company has spent buying back stock that it has not subsequently resoldMatch each of the following terms with the correct definition: a. additional paid-in capitalb. issued and outstandingc. retained earningsd. treasury stocke. authorized share capitalf. par value Correct Definitions:A. The price at which each share is recorded in the company’s booksB. Held by investorsC. Cumulative amount of profits that have been plowed backD. The difference between the amount of cash raised by an equity issue and the par value of the issueE. The maximum number of shares that can be issued without shareholder approvalF. The amount that the company has spent buying back stock that it has not subsequently resold SELECTED FORMULAS PVIFA = PVIF = requity = rassets + (rassets – rdebt) PV of tax shield = = Tc *DWACC = (1-Tc) * *() + *()
- If 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. CostHow would the share dividends distributable account balance be presented on the statement of financial position? * a. as part of current liabilities b. as addition to share capital c. as addition to retained earnings d. as addition to additional paid in capitalPremium on issue of shares is a revenue expenditure
- Trading securities, by definition, are properly classified in the statement of financial position as: Select one: O a. Shareholders' equity O b. Other assets O c. Intangibles O d. Current assetsChoose the correct classification for the following accounts: A forfeited shares account; A forfeited shares reserve: 1. Liability Asset2. Income Equity3. Expense Liability5. Asset Income5. Liability Equity a. 1 b. 2 c. 3 d. 4 e. 5Which of the following is an appropriate presentation of treasury stock? * O As a marketable security As a deduction at cost from total stockholders' equity As a deduction at cost from total contingent liabilities As a deduction at par from total stockholders' equity
