Corporation

Violet Inc. Issued 8000 shares of P20 par ordinary share capital for P24 per share. In recording this sale of share capital, Violet will include a credit to

• Gain on issuance of share capital for P 32,000

• Ordinary share capital for P 92,000

• Paid-in capital in excess of par for P 32,000

• Discount on ordinary share capital for P 16,000

Which of the following is not typically a characteristic of preference shares?

• Preference as to dividends

• Preference as to voting rights

• Cumulative and callable terms

• Preference over ordinary shareholders during liquidation

When ordinary shares are issued in exchange for services or non-cash assets, the transaction should be recorded at the

• Par value of the ordinary shares issued

• Fair market value of the ordinary shares issued

• Fair market value of the services or non-cash assets received

• Fair value of the services or non-cash assets unless the fair value the ordinary shares is more reliably determinable

When preference share are fully participating, this mean that ordinary shareholders receive dividend rate equal to the preference share and

• All excess dividends are shared proportionately between the preference and ordinary shareholders

• All excess dividends are given to the ordinary shareholders

• All excess dividends go to the preference shareholders

• The maximum participation rate is applied to the preference shares

Preference shares that have no claim on any prior year dividends that may have passed

• Cumulative preference shares

• Participating preference shares

• Non-cumulative preference shares

• Non-participating preference shares

The Securities and Exchange Commission 25%,25% rule means that

• At least 25% of the total authorized share capital has been subscribed

• At least 25% of the total subscription have been paid

• A only

• Both A and B