Which of the following statements is false? a. the common stock account has a credit balance. b. the additional paid-in capital account has a credit balance. c. common stock may be issued for more than par value. d. the par value of common stock represents the stock's market value.

The Share Premium-Ordinary account represents the amount of legal capital. is reported as part of equity on the statement of financial position. is credited when a no-par share does not have a stated value. normally has a debit balance. OOO

For the transaction of the purchase of common stock, why are we debiting cash and crediting the common stock? Would you not reverse this transaction, if so the retained earnings are also incorrect.

If most participants in the stock market do not follow what is happening to monetary aggregates, prices of common stock will not fully reflect information about them. Is this statement true? Explain your answer

Statement I. Appropriation reserve is used to restrict earnings available for dividends Statement II. The issuance of stock dividends increases share capital and total shareholders' equity a. Statement I and II are trueb. Statement I and II are falsec. Statement I is true, Statement II is falsed. Statement I is false, Statement II is true

If a preferred stock is of the cumulative type, a. dividends cannot be passed if they are earned.   b. unpaid dividends of one period must be carried forward and paid in subsequent periods before anything can be paid to common stockholders.   c. dividends must be paid, and if not a liability is created.   d.dividends must be paid on an equal basis with common stock, so long as earnings permit.

When treasury stock is purchased for cash at more than its par value, what is the effect on total shareholders’ equity under each of the following methods?

True or False: When stock is issued for more than its par value, the excess is considered to be an expense and should be reported on the income statement. Select one: O True False

Changes in the fair value of held to maturity securities are: A. not recognized. B. recognized on the income statement and as part of stockholders' equity. C. reported as part of stockholders' equity. D. recognized on the income statement.

The numerator in the calculation of the ratio of liabilities to stockholders' equity is O a. Total Assets. O b. Total Liabilities minus Total Stockholders' Equity. O c. Total Liabilities. O d. Total Stockholders' Equity.