Which of the following is False in regards to Share premium account? a. It will be shown under the shareholders equity b. It will be collected when the issue price is more than the par value of shares c. It will be collected when the par value of share is more than the issue price d. It will not be shown under current assets in the balance sheeting

Q: What is the impact of decrease in assets or increase in liabilities resulting in decreases in…

A: when the assets reduces, the profits of the company also tends to fall. there can be no chance of…

Q: Under FASB 52, the temporal method requires that: A. translation gains and losses are included in…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: (I) A share of common stock in a firm represents an ownership interest in that firm. (II) Preferred…

A: Owners of the company:The company functions with the help of the management, However, they are not…

Q: 14. For available-for-sale securities, a decline in value due to a temporary decline in market value…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: hich statement about book value per share (BVPS) is true??? A. Market price per share usually…

A: When company start the operations than company issues shares and they are issued at very low prices…

Q: Restricted retained earnings by making an entry equal to the cost of treasury shares purchased.

A: Shareholder Equity- The amount invested by shareholders in a specific organization is referred to as…

Q: Common stockholders; a. have the first claim on the income and assets of the firm b. contribute…

A: Share capital is the important source of finance that is being used by the company to fulfill its…

Q: Which of the following statement is false in regards to Share premium? a. It will be shown under…

A: (a) Share premium will be shown under equity section in the balance sheet (b) Share premium will be…

Q: In the context of choosing a share repurchase over declaring dividends, a share repurchase would *…

A: Share repurchase means buying back of the shares by the company. It is also referred to as treasury…

Q: Secondary market trading of a company’s previously issued shares directly affects the company’s real…

A: Primary market is the market where securities are dealt for the first time. Secondary market is the…

Q: eported earnings become overstated as a result of failure to record  a. the amortization of premium…

A: Solution Concept The reported earnings is overstated when the expenses has not been recorded or…

Q: A stock split is a monetary transaction. Consequently, a company that splits its stock must make…

A: A stock split is when a company increases the number of its shares and reduces the stock price per…

Q: Which of the following is not popular in the present business scenario? O a. None of the options O…

A: Business can be defined as the organization or entity  that is engaged in commercial, professional,…

Q: n stock appreciation right, decline in fair value of share shall be accounted as A. Loss and…

A: The prices of shares goes up and down and adjustment are to be done for that.

Q: Which statement is true? a. Stock must have either a par or stated value b. If nominal, par value…

A: a) False. A stock that that has neither par value nor stated value, will be considered on the whole…

Q: Which of the following should be presented in the statement of changes in equity?   A. Distributions…

A: The financial statements of the business include the income statement, balance sheet and statement…

Q: Treasury share should not be classified as a current asset. Select one: True False

A: Lets us have basic understanding of treasury shares. This type of shares refer to shares which were…

Q: Identify the term being referred to: A theory that states that how high or low an entity pays out…

A: Solution:- There are two theories related to dividend-  Dividend relevance theory and dividend…

Q: Debenture is a debt instrument and so is issue of shares

A: Equity is reported under the head stockholders' equity in the balance sheet of the company. Whereas,…

Q: Earnings and profits are conceptually similar to retained earnings.     A distribution from…

A: The dividend can be paid either from current earnings and profits or from the accumulated earnings…

Q: The cost of equity issuance and retained earnings are the same if

A: The cost of equity issuance and retained earnings are same if thereis no flotation cost.Option B is…

Q: For upstream sales the total amount of unrealized gains and losses are allocated between controlling…

A: Following is the answer to the given question

Q: Share issue costs refer to the costs of obtaining the legal, promotional, and accounting services…

A: Paid-in capital:Paid-in capital simply refers to the full amount of cash or other assets that…

Q: loss on trading securities? a. Stockholders' equity decreases, and liabilitie

A: The correct statement is : a) Stockholder's equity decrease , and liabilities increase .

Q: Reported earnings become overstated as a result of failure to record which of the following: a. the…

A: THIS is one of the most common  in financial statement. there may be a case of manipulation of…

Q: .  The weighted-average number of shares outstanding during the period for all periods (other than…

A: Disclaimer: "Since you have asked multiple question in a single question we have answered first…

Q: The declaration of the dividends by a company has no effect on the retained income of the company,…

A: Approach to solving the question: Analyze the question. Detailed explanation:The declaration of…

Q: When a share split occurs, the aggregate par value of issued shares will change. * True O False

A: Share split means to divide the shares and increase them in numbers and alternatively adjusting the…

Q: Which of the following is not true for Book Value of a share? * It depends on the balance sheet…

A: Book value of share: The book value is calculated on the basis of the book value of assets and…

Q: hat does it mean when a company has zero net income but its stock price has increased? How do you…

A: Equity method: The equity method is used to record the profit earned by a company by investing in…

Q: When non-par value shares are reacquired at a cost greater than their average issue price and…

A: Stock that has no par value is known as no-par value stock. The price that investors are ready to…

Q: For downstream sales the total amount of unrealized gains and losses are allocated between…

A: Downstream sales is the sales made by parent company to subsidiary company. Parent company is the…

Q: An entity need not disclose...   a. A description of the nature and purpose of each reserve within…

A: This question deals with the which things entity does not needs to disclose. As per para 79 of the…

Q: Statement I. Book value per share is tantamount to earnings per share Statement II. Dividends…

A: Book value per share is ratio of shareholders equity less preferred equity to number of shares…

Q: Which of the following statements is false?   A.   Mutual funds are pool investor funds to…

A: Working capital is the capital which is required to operate day to day working of a business. It…

Q: Appropriating retained earnings will Multiple Choice cause an increase in stockholders' equity.…

A: Appropriating retained earnings will have no effect on total stockholders' equity. Appropriating…

Q: Choose the incorrect statement below: A. Retained earnings are the funds

A: Option d is incorrect

Q: There are limitations

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…