Which is an advantage of a shareholder over a partner

• owner cannot directly control business operation

• owner can easily transfer his interest

• Owner's liability is limited

• b and c

Which of the following is a major disadvantage of a corporation?

• transferability of interest

• availability of capital

• limited liability

• legal requirements

This account title is credited to represent shareholder's equity for contribution made in cash, property or service

• share capital

• subscribed share capital

• subscription receivable

• treasury share

the amount at which the issue price exceeds the par value is credited to

• gain on share capital

• share premium

• discount on share capital

• loss on share capital

Share of stock a corporation is allowed to issue

• subscribed shares

• treasury shares

• authorized shares

• issue shares

One of these items may not form part of the shareholders equity section

• retained earnings

• share premium

• authorized share capital

• subscription receivable

When 100 common shares of 100 par are subscribed for 120. In recording this transaction you should

• subscription receivable should be debited for 12,000

• subscription receivable should be debited for 10,000

• subscribed receivable should be credited for 12,000

• credit ordinary share capital 10,000 and ordinary share premium 2,000

Filipinas Inc sold 100 shares of 100 par common stock for 120. in recording this transaction you should

• credit ordinary share capital 12,000

• credit ordinary share premium 12,000

• credit ordinary share capital 2,000 and ordinary share premium 10,000

• credit ordinary share capital 10,000 and ordinary share premium 2,000

When 100 common shares of 100 par are subscribed for 120

• subscribed share capital for 12,000

• subscribed share capital for 10,000 and share premium for 2,000

• subscribed share capital for 10,000 and retained earnings for 2,000

• share capital for 10,000 and share premium for 2,000

When a par value common stock is exchanged for an asset such as building, the common stock should be credited at the

• par value

• appraised value of the asset

• at its book value

• at its original cost price