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WorksheetsCompanies
Total questions: 12
Worksheet time: 1hrs 20mins
Match the following :
Dividends Declared and paid during the financial year
Interim dividends
Dividends declared at the end of the financial year but not yet been paid, and will be paid at the beginning of the next of the financial year.
Buy-back of shares
also known as a “Shares Repurchase”, is a company’s buying back its shares from the marketplace. You can think of a buy-back as a company investing in itself, or using its cash to buy its own shares.
Final dividends
Are the owners of the company
Directors
They are directly appointed by the shareholders
Shareholders
Match the following
Owned by the shareholders who are members of the general public and trade shares publicly.
Public company
Financial statements must disclose items that are important to the users/readers so that correct evaluations and decisions can be made from the information provided
Authorised share capital
All possible losses are recorded in the Income statement but anticipated profits are not reported until they are realized.
Matching
The total number of shares that the company is allowed to issue to the public as stipulated in Memorandum of Incorporation.
Materiality
Income earned and expenses incurred must be reported in the same financial period so that the correct net profit is calculated.
Prudence
Choose the correct GAAP principal for the following :
Rent has been received for 13 months. Rent for 12 months is shown in the Income Statement
matching
materiality
prudence
going concern
choose the correct GAAP principal :
The owner of the business wins R2 000 in a competition. This is not shown in the Income Statement of the business.
going concern
materiality
historical cost
business entity
Choose the correct GAAP principle :
Land and buildings are shown in the Balance Sheet at R500 000, although the market value is estimated at R800 000.
Going concern
Historical cost
Choose the correct GAAP principle :
Trading stock is shown in the Balance sheet at R10 000 but the business would only get R7 000 if the stock were to be sold at a flea market the next day.
going concern
prudence
Choose the correct GAAP principle:
Cleaning materials bought for R25 are shown as part of Sundry Operating Expenses in the Income Statement.
prudence
business entity
historical cost
materiality
Give two reasons why will a company buy back its shares ?
Briefly explain what is meant by:
Issue price
Explain what is interim dividends and final dividends ?
Explain what is Ordinary share capital and retained income ?
Explain why a company has to have ‘Limited’ or ‘Ltd’ in its name?
