Multiple Choice Questions
1. In a capital increase, the difference between the price paid by the buyer for a company’s common share and the par value of each share can be called (several possible answers)
(a) Capital surplus
(b) Share premium
(c) Additional paid-in capital
(d) Paid-in capital
(e) Additional contributed capital
(f) Ordinary share capital
(g) Capital in excess of par value
(h) Premium fund
(i) All of these
2. In all types of limited liability companies, it is possible for shareholders to defer the payment of one part of the subscribed capital
(a) True
(b) False
3. The number of authorized shares is greater than the amount of outstanding shares which is greater than the amount of issued shares
(a) True
(b) False
4. A share may grant a voting right greater than one vote per share but never lower than one vote per share
(a) True
(b) False
5. The main objective of the legal reserve is to protect the shareholders of the company
(a) True
(b) False
6. According to IAS 1, which of the following items should be disclosed either on the balance sheet or in Notes?
(a) The number of shares authorized
(b) The number of shares issued and fully paid, and issued but not fully paid
(c) Par value per share, or that the shares have no par value
(d) All of these
7. Dividends cannot be distributed if net income of the period is negative
(a) True
(b) False