Reference no: EM132786648

Question 1: When Hope Corp. declares and pay dividends to holders of redeemable preference shares, Hope shall treat this as debit to

a. Cash.
b. Interest Expense.
c. Cash dividends.
d. Retained Earnings.

Question 2: Which of the following IS NOT INCLUDED in share capital?

a. Retained Earnings
b. Donated Shares
c. Share Options Outstanding
d. Ordinary Shares

Question 3: BSA Corp.'s board of directors declared 20,000 ordinary shares with P10 par value as delinquent. The original subscribed has paid P100,000 representing 20% of the total subscription. The unpaid balance plus accrued interest, cost of advertisement and expenses of auction sale is P450,000. Who among the following bidders is the highest bidder?

a. Sta. Maria, 17,500 shares
b. San Pedro, 17,000 shares
c. San Jose, 18,000 shares
d. De Jesus 15,000 shares

Question 4: Treasury stock is best described as

a. reacquired share which was previously issued and outstanding.
b. an asset acquired by making a cash disbursement.
c. unissued share.
d. retirement of a portion of outstanding share which increases total equity.

Question 5: When XYZ Corp. changes the no-par ordinary shares with P50 stated value to ordinary shares with P75 par value, what is the effect on share premium and retained earnings?

a. No effect, no effect.
b. Decrease, no effect.
c. Decrease, decrease.
d. No effect, decrease.