Reviewer for midterm (SHE)

Share split is issued primarily to

• Induce a decline in market value per share

• Increase the number of outstanding shares

• Increase the number of authorized shares

• Increase legal capital

Loss on retirement of treasury shares is debited to

• Share premium from treasury shares, share premium from original issuance and then retained earnings

• Share premium from original issuance, share premium from treasury shares and then retained earnings

• Retained earnings

• Share premium from treasury shares and then retained earnings

What is the meaning of net assets of a corporation?

• Legal capital

• Shareholders' equity

• Retained earnings

• Contributed capital

If shares are issued to extinguish a financial liability, what is the initial measurement of the shares issued?

• Par value of the shares

• Fair value of liability extinguished

• Book value of the shares

• Fair value of the shares

Which is issued to shareholders to acquire unissued shares within a specified time at a specified price?

• Share appreciation right

• Share subscription

• Share option

• Share warrant

The share capital account is measured as

• The shares issued multiplied by book value

• The shares issued multiplied by par value

• The shares outstanding multiplied by market value

• The shares outstanding multiplied by par value

Authorized share capital refers to the total number of shares

• Issued

• That can be issued

• Outstanding

• Issued and outstanding

When an entity calls in all of the preference shares for more than

the original issue price, the excess over the original issue price should be

• Accounted for as loss on exchange

• Charged agains share premium of ordinary shares

• Charged to a discount on preference shares

• Charged against retained earnings

When preference shares are retired by the issuer at a price below the original issue price, the transaction

• Increases contributed capital of ordinary shareholders

• Increases net income for the year

• Increases revenue for the year

• Increases retained earnings

When shares with par value are sold, the excess of the proceeds over the par value is credited to

• Share capital

• Retained earnings

• Share premium

• Gain on issuance of shares