Corporations

All of the following represent advantages of corporations over other business entities except

• separate legal entity

• continuity of existence

• ease of transferring ownership

• unlimited shareholders liability

What are journal entry to record issuance of shares

• Dr Share capital

  Cr Cash/Bank

• Dr Cash/Bank

  Cr Share Capital

• Dr Revaluation reserve

  Cr Share capital

• Dr General expense

  Cr Share capital

What are journal entries for capital reserve

• Dr Non-Current assets

  Cr Revaluation reserve

• Dr Revaluation reserve

  Cr Non-Current assets

• Dr Bank

  Cr Revaluation reserve

• Dr Revaluation reserve

  Cr Capital

General reserve is an example of a capital reserve

• True

• False

What are purpose of revenue reserve?

• pay dividens

• issue bonus shares

• absorb past losses

• retained earnings

Preference Share Capital (PSC) has the right to vote at the company's annual general meeting

• Yes

• No

What is corporation tax?

• percentage of profit that the company is required to pay to the shareholders

• percentage of profit that the company is required to pay to the government

• percentage of profit that the company is required to pay to the business

If the dividend is 5 sen per share and the number of issued ordinary share capital is 10000 units then the dividend is

Interim dividends is a percentage of profit that is not declared and paid to the shareholders during the year company expects to make a profit.

• True

• False

Interim dividends of the preference shareholders for the year were RM1500. The 9% preference share capital issued is RM50000. What is the final dividend to be paid to the preference shareholders?

• RM8000

• RM3000

• RM4500

• RM6000