INTACT 2 - Theories in Shareholder's Equity

What is the meaning of net assets of a corporation

• Contributed capital

• Retained earnings

• Shareholders equity

• Legal Capital

The two primary account classifications within shareholders equity?

• Preference shares and retained earnings

• par value of ordinary shares and retained earnings

• Contributed capital and retained earnings

• Preference shares and ordinary shares

Details of each class of share capital should be reported

• on the face of the statement of financial positon

• in disclosure only

• On the face of the statement of financial position or in disclosure notes

• On the face of the statement of comprehensive income and disclosure notes

The corporate chapter is known as

• Articles of incorporation

• Statement of organization

• By-laws

• Registration statement

Characteristics of the corporate form that have led to the growth of this form of business ownership include all of the following, except

• Ease of raining capital

• Low government regulation

• Limited liability

• Ease of ownership transfer

Outstanding ordinary shares are

• Shares that are performing well on the Philippine Stock Exchange

• Shares that have been authorized by the state for issue

• Shares held in the corporate treasury

• Shares in the hands of shareholders

Issued shares refer to the number of shares

• Outstanding plus treasury shares

• Shares issued for cash

• In the hands of shareholders

• That may be issued under state state law

Authorized share capital refers to the total number of shares

• Outstanding

• Issued

• Issued and outstanding

• That can be issued

The share capital account is measured at

• The shares outstanding multiplied by the par value

• The shares outstanding multiplied by the market value

• The shares issued multiplied by par value

• The shares issued multiplied by book value

The par value of shares issued is normally recorded in

• Additional paid in capital

• Share capital account

• Retained earnings account

• Appropriated retained earnings account