Share Capital and Dividends Quiz
13 multiple-choice questions with answers and explanations · 6 easy, 3 medium, 4 hard
Issuing shares, treasury shares, retained earnings, and the declaration, record and payment dates of a dividend.
- 1Effect of Dividends on the Financial StatementsCash dividends declared and paid to shareholders:easy
- 2What Retained Earnings RepresentsThe Retained Earnings balance represents:easy
- 3Effect of a Treasury Stock PurchaseWhen a company repurchases its own shares and holds them as treasury stock, total shareholders' equity:easy
- 4Date of DeclarationOn the date a company's board of directors declares a cash dividend, the company records:easy
- 5Recording the Payment of a DividendOn the payment date of a previously declared cash dividend, the company records:easy
- 6Issued Shares vs Outstanding SharesWhen a company holds treasury stock, its issued shares and its outstanding shares:easy
- 7Statement of Changes in Equity — ContentsWhich item does NOT appear in the statement of changes in equity?medium
- 8Recording a Cash Dividend DeclarationA company declares a $2 per share cash dividend on 50,000 shares outstanding. The journal entry on the declaration date includes:medium
- 9Reissuing Treasury Stock Above CostA company reacquired 1,000 shares of treasury stock at $15 per share and later reissues all 1,000 shares at $18 per share. The $3,000 excess of the reissue price over cost is recorded as:medium
- 10Issuing Shares Above Par — Share PremiumA company issues 10,000 ordinary shares of $1 par value at $4.50 per share for cash. The credit to Share Premium (Additional Paid-in Capital) is:hard
- 11Treasury Shares — Reissue Above CostA company reissues treasury shares for more than it paid to buy them back. The excess is:hard
- 12IAS 32 — Convertible Bonds as Compound InstrumentsUnder IAS 32, the issuer of a convertible bond initially:hard
- 13Stock Split vs Stock DividendA company executes a 2-for-1 stock split on its $1 par value common shares. As a direct result of the split alone:hard