ABDB UPASS Session 2

What is NOT a characteristic of a company?

• Unlimited liability of owners

• Ability to raise capital

• Separate legal entity

• Dividend imputation

When a cash dividend is declared what account is credited?

• Retained Earnings

• Cash

• Income Summary

• Dividends payable

True or False?

Share buybacks reduce Ordinary Share Capital.

Dividends declared during the year are reported on the...

• Balance Sheet

• Income Statement

• Statement of Changes in Equity

• Cash Flow Statement

True or False?

A company that declares a 2-for-1 split halves its total amount of shares.

How did you find this topic?

• Easy

• Challenging but doable

• Impossible

• Okay