Capital: Shareholder Equity and Retained Earnings

Ordinary share is a type of ___________.

• non-current asset

• non-current liability

• share capital

• retained earning

Which one of the following journal entries is recorded when a company issues ordinary shares and received cash?

• Dr Share Capital

  Cr Cash

• Dr Cash

  Cr Share Capital

• Dr Cash

  Cr Retained Earning

• Dr Retained Earning

  Cr Cash

Preference sharesholders received a fixed dividend and are paid after ordinary sshareholders.

• True

• False

Which one of the following types of shareholders have no voting rights?

• Ordinary Shareholders

• Preference Shareholders

• Treasury Shareholders

When recording shares buyback, ________________ account is debited and cash account is credited.

Company has to ensure that it has sufficient ___________ before the declaration of cash/stock dividends.

• Net Profit

• Retained Earning

• Cash

• Expenses