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Quiz on Corporate Finance

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

PT Adi Perkasa experienced a correction for the error in recording last year's revenue, which caused the net profit to be too small. According to PSAK 25, the adjustment to retained earnings is done by?

a)

Recording the change prospectively

b)

Reducing the current year's retained earnings

c)

Restating the beginning retained earnings

d)

Increasing the paid-in capital

e)

Eliminating expenses in the current period

2.

In the GMS, PT Bersinar decided to distribute property dividends in the form of land to shareholders. This decision is most likely due to?

a)

No retained earnings

b)

Excess fixed assets or cash limitations

c)

Shareholder requests

d)

Legal obligations of the company

e)

Bonus share distribution

3.

Dividends that are paid with a written promise to pay in the future and may be accompanied by interest are called?

a)

Stock Dividend

b)

Property Dividend

c)

Cash Dividend

d)

Scrip Dividend

e)

Bonus Dividend

4.

Which of the following is not a purpose of purchasing treasury stock?

a)

Reduce ownership claims

b)

Increase returns on equity

c)

Reduce earnings per share

d)

Stabilize stock prices

e)

Prepare incentives for employees

5.

In 2021, PT BBCA conducted a stock split with a ratio of 1:5. What is the main impact?

a)

Equity value increases fivefold

b)

Shares become inactive in trading

c)

Price per share decreases proportionally

d)

Retained earnings increase

e)

Paid-in capital decreases

6.

Liquidation dividends differ from regular dividends because?

a)

Paid in the form of fixed assets

b)

Obtained from the sale of shares

c)

Results in an increase in earnings per share

d)

Given in the form of a promise to pay

e)

Paid from paid-in capital, not retained earnings

7.

PT Intan Sejahtera sets aside part of its profit balance for future factory expansion. This action is classified as?

a)

Voluntary restriction

b)

Contractual restriction

c)

Legal restriction

d)

Stock dividend

e)

Quasi reorganization

8.

Which of the following statements is true about stock dividends?

a)

Always reduces the company's cash

b)

Does not affect retained earnings

c)

Adds to the company's total assets

d)

Reported as additional income

e)

Does not change the total equity value

9.

Buying treasury shares at a low price and selling them again at a high price can generate?

a)

Increase in retained earnings

b)

Decrease in stock premium

c)

Capital gains for the company

d)

Reduction of long-term liabilities

e)

Addition to accounts receivable

10.

The record date in dividend distribution is used for?

a)

To reduce the company's cash

b)

To determine the shareholders entitled to the dividend

c)

To recognize dividend liabilities

d)

To make journal entries for dividends

e)

To pay dividends to investors