7/6/2023 0 Comments Accounting writedown![]() A note to financial statements B An entry is not made on theĭ. A reduction in total shareholders' equityĭ. An addition to share capital outstandingĬ. The amount of working capital decreases B Undistributed share dividends shall be reported asī. Total shareholder's equity does not changeĭ. Decrease and No effect A When a share dividend is declared and issuedĪ. Share dividend D How would retained earnings be affected by the declaration of share dividend and share split, respectively?ĭ. Conversion of preference shares into ordinary sharesĭ. Stock dividends represents a transfer from retained earnings to share capital B Which of the following would not affect retained earnings?Ī. Stock dividends are payable on the date declaredĭ. Stock dividends increase the shareholder's equity in the issuing equityĬ. Stock dividends increases the relative book value of an individual's shareholdingsī. Declaration of cash dividend D Unlike a share split, a stock divided requires a formal journal entry in the accounting records becauseĪ. Issuance of non-convertible bonds with share warrantsĭ. Issuance of preference shares in exchange for convertible debenturesī. A share dividend but not a share split C Total shareholder's equity remains the same when there isĪ. Neither a share dividend nor a share splitĬ. Either a share dividend or a share splitī. 2 for 1 share split D If the entity has only one class of share capital, a transfer from retained earnings to share capital equal to the fair value of the shares issued is ordinarily a characteristic ofĪ. No effect and No effect B The issuer should charge retained earnings for the fair value of shares issued in aĭ. How would this declaration affect contributed capital and retained earnings, respectively?ĭ. Paid in capital and no effect on retained earnings B An entity declared a dividend a portion of which was liquidating. Retained earnings and no effect on paid in capitalĭ. Both paid in capital and retained earningsĬ. Neither paid in capital nor retained earningsī. Participating dividend D When an entity declared and paid a liquidating dividend, the distribution resulted in a decrease inĪ. Payment A A dividend which is a return to shareholders of a portion of their original investment isĭ. Declaration or date of record, whichever is earlierĭ. Decrease on the date of payment A The actual total amount of a cash dividend to be paid is determined on the date ofĬ. Not be affected on the date of declarationĬ. ![]() Fair value C An entity declared a cash dividend on a certain date payable on another date. Lower of carrying amount and fair value less cost to distributeĭ. Retained earnings C An entity shall measure a non current asset classified as held for distribution to owners atĬ. A When an entity settles the property dividend payable, it shall recognized the difference between the carrying amount of the asset distributed and the carrying amount of the dividend payable inĭ.
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