1. Treasury shares are shares that have been issued by the corporation as fully paid and later...
Question:
1. Treasury shares are shares that have been issued by the corporation as fully paid and later reacquired but not retired.
True or false?
2. Preference shares – entitle the holder to certain advantages or benefits over the holders of ordinary shares
True or False?
3. The purchase of treasury shares decreases the number of issued and outstanding shares
True or False
4. The par value of a share capital is
Group of answer choices
a. The liquidation value of the share
b. The legal nominal value assigned to the share
c. The amount received by the corporation when the share capital was originally issued
d. The present value of the share
5.
Use the following information for the next 2 questions.
The following information relate to the records of RAZOR CO.
Authorized Ordinary Shares, 500,000 shares, P10 par | |
Ordinary Share Capital | P2,500,000 |
Ordinary Shares Subscribed Capital | 1,200,000 |
Ordinary Shares Subscriptions Receivable | 600,000 |
Ordinary Share Premium | 740,000 |
The Ordinary Shares Subscribed of P1,200,000 refers to subscriptions made by 10 persons. Each of the ten subscribers subscribed to an equal number of shares at par and each one made a fifty percent payment on their subscriptions.
QUESTION 1
Assuming four of the ten subscribers of RAZOR CO. who still have a balance payable on their subscriptions made full payment, how many shares of ordinary share capital will be issued?
QUESTION 2
When all of the subscriptions receivable of RAZOR CO. have been collected and the shares issued what is the total amount of Share Capital issued and the total number of shares issued?
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany