Company Accounts

Which item would be entered in a statement of changes in equity?

• Debenture interest accrued

• Debenture interest prepaid

• Ordinary dividend paid for current year

• Ordinary dividend proposed for current year

Which item is directly affected by the dividend policy of a limited company?

• General reserve

• Ordinary share capital

• Preference share capital

• Retained earnings

• A

• B

• C

• D

Which statement about ordinary shares are correct?

1 If a company is wound up ordinary shares are repaid after debentures

2 Ordinary shares are a non-current

3 The holders of ordinary shares are the owners of the company

• A 1 and 3

• B 1 only

• C 2 and 3

• D 3 only

Which items are shown in a statement of changes in equity?

• A

• B

• C

• D

Which items are only included in the equity section of the statement of financial position of a limited company?

• A Ordinary shares, retained earnings, debentures and current liabilities

• B Ordinary shares, retained earnings and debentures only

• C Ordinary shares and retained earnings only

• D Ordinary shares only

What are the main features of debentures?

• A

• B

• C

• D

During the financial year, a manufacturing company's payments included the following.

Purchasing of a new machine

Running costs of the machine

Where would these appear in the financial statement prepared at the end of the financial year?

• A

• B

• C

• D

What would be included in the statement of changes in equity?

• Called-up Capital

• Authorised Capital

• Issued Capital

• Uncalled Capital

What is meant by authorised capital?

• This is the total of the share capital which the company is allowed to issue to the shareholders

• This is the total of the share capital actually issued to the shareholders

• This is the value of shares which a company has requested from its shareholders

• This is the total amount which is to be received in future, but which has not yet been asked for