FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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1. A corporation's residual equity is its
•Preference shares
•Retained Earnings
•Share Premium
•Ordinary Shares
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- am. 05.arrow_forward(Multiple Choice) A corporation can only pay dividends to shareholders from its: 1. Legal Capital 2. Authorized Shares 3. Retained Earnings 4. Contributed Capital 5. Share Capitalarrow_forwardShares of stock represent ______ interest in a company. A) Cash B) Ownership C) Debt D) Specialarrow_forward
- In a limited company which of the following is shown in the statement of changes in equity? a. Loan note interest and dividends b. Dividends paid and transfer to reserves c. Transfer to reserves and loan note interest d. Directors remuneration and Dividends paidarrow_forwardWhich of the following characteristics of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? Question 7Answer a. Separate legal entity b. Separation of ownership and management c. Transferability of ownership d. Limited liabilityarrow_forwardWhich financial instrument represents ownership in a corporation and entitles the holder to a share of the companys profits? a. Bond b. Preferred Stock c. Common Stock d. Debenturearrow_forward
- What is the unit product cost under variable costing?arrow_forwardQuestion 1 Which of the following would NOT be included as equity in a corporate balance sheet? Retained earnings Paid in capital Cash Ordinary sharesarrow_forwardTRUE OR FALSE Outstanding shares are the number of shares sold or conveyed to owners.arrow_forward
- 2. The value of the warrants attached to a debt security (detachable) is accounted as: a) Liability b) A part of share capital c)An appropriation of retained earnings d) A separate portion of share premiumarrow_forwardGenerally, once declared, a cash dividend ordinary shares becomes a liability of the corporation. * O True O Falsearrow_forward
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