Capital can be provided in the form(s) of: (Difficulty: Easy)
Cash contributions.
Contribution of tangible or intangible assets.
Contribution of intellectual property.
All of the above
The IASB defines equity as the _________ interest of the investors in the assets of the entity after deducting all its liabilities.(Difficulty: Moderate)
Financial
Insignificant
Immaterial
Residual
Which of the following is not a generic and alternative legal form of organization with capital provider(s)? (Difficulty: Moderate)
Sole proprietorship
Association
Limited company
Partnership
Which of the following items is not a sub-category of shareholders’ equity? (Difficulty: Moderate)
Share capital
Retained earnings
Dividends payable
Share premium
Which of the following is defined as: ‘The part of the capital that has been effectively contributed by the shareholders and is available to the corporation? (Difficulty: Moderate)
Uncalled capital
Subscribed capital
Paid-in capital
Authorized capital
What type of shares carry special rights? (Difficulty: Moderate)
Ordinary shares
Right shares
Special shares
Preferred shares
Which of the following equations is correct? (Difficulty: Moderate)
Share premium = Issue price + Par value
Share premium = Issue price – Par value
Share premium = Issue price/Par value
Share premium = Issue price x Par value
New shareholders contribute a patent value at 15 000 CU. In exchange for the property transfer of the patent, those new shareholders receive 10 000 ordinary shares with a par of 1 CU. What is recorded in the balance sheet for this issuance of shares? (Difficulty: Moderate)
Which entry is recorded in case of capitalization of reserves? (Difficulty: Moderate)
How is the market to book ratio calculated? (Difficulty: Moderate)