ACCA Share Capital and Dividends — practice questions
24 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice ACCA Share Capital and Dividends in the app →A corporation's accounting equation can be expressed as Assets = Liabilities + Equity. Within equity, which twWhich of the following events would cause a corporation's total shareholders' equity to decrease?In a corporation, what is the term for the number of shares a corporation is permitted to sell, as set when thWhy is no journal entry recorded when a corporation's board authorises a number of shares?A corporation issues 15,000 ordinary shares of $10 par value at $10 per share for cash. What amount is crediteA corporation issues 15,000 ordinary shares of $10 par value at $12 per share for cash. What amount is crediteWhen ordinary shares are issued for cash above par value, which account absorbs the portion of cash received tA corporation issues 1,000 preference shares of $100 par value at $105 per share for cash. What are the creditA preference share is described as "$1 preferred, $100 par" issued at $105. What does the "$1" refer to, and dA corporation issues 10,000 ordinary shares of $20 par value in exchange for land when the fair market value oA corporation issues 1,000 ordinary shares of $10 par value to an engineer for services when the shares' fair On which of the three cash-dividend dates is NO journal entry recorded?On the declaration date of a cash dividend, which journal entry is recorded?A corporation declares dividends of $2 per share on 10,000 preference shares outstanding and $0.50 per share oA corporation issued 30,000 ordinary shares, reacquired 10,000 as treasury shares, then resold 1,000 treasury Why are no cash dividends paid on treasury shares?A corporation declares a 2% stock dividend on 21,000 ordinary shares of $10 par value when fair market value iOn declaration of a 2% stock dividend on 21,000 ordinary shares of $10 par (fair value $15), what amount is crWhat is recorded on the distribution date of a previously declared stock dividend?What overall effect does a stock dividend have on a corporation's equity section?A corporation has 10,000 shares outstanding at $16 par with a market price of $20, then declares a 4-for-1 stoFollowing a 4-for-1 stock split on 10,000 shares with a $20 market price, what happens to the total market capWhich statement correctly distinguishes a stock split from a stock dividend?A corporation begins the period with retained earnings of $60,000, earns net income of $40,000, and declares c