Quiz in Shareholder's Equity

When shares with par value proceeds over the par value is credited to

• Share capital

• Share premium

• Retained earnings

• Gain on issuance of share capital

When shares without par value are sold, the proceeds shall be credited to

• Share capital

• 1. Shareholders ‘equity

• Share capital to the extent of the stated value and any excess is credited to share premium

• Share premium

If shares are issued for noncash consideration, the proceeds shall be measured by the

• Fair value of the shares issued

• Fair value of the noncash consideration received

• Par value of the shares issued

• Cost of the noncash consideration received

If shares are issued to extinguish a financial liability, what is the initial measurement of the shares issued?

• 1. Par value of the shares issued

• 2. Fair value of the shares issued

• 2. Fair value of liability extinguished

• 1. shares issued

When shares are issued for services received, the least appropriate measure is equal to

• Fair value of such services

• Par value of the shares issued

• Book value of the shares issued

• Fair value of the shares issued

What is the meaning of net assets of a corporation?

• Contributed capital

• Retained earnings

• Shareholders ‘equity

• Legal capital

The two primary account classifications within stockholders’ equity are

• Preference shares and retained earnings

• Par value of ordinary shares and retained earnings

• 1. Contributed capital and retained earnings

• Preference shares and ordinary shares

Details of each class of share capital should be reported

• On the face of the statement of financial position only.

• In disclosure notes only.

• On the face of the statement of financial position or in disclosure notes.

• On the face of the statement of comprehensive income and in disclosure notes.

The corporate charter is known as

• Articles of incorporation

• Statement of organization

• By-laws

• Registration statement

Characteristics of the corporate form that have led to the growth of this form of business ownership include all of the following, except

• Ease of raising capital

• Low government regulation

• Limited liability

• Ease of ownership transfer