Corporations : Shared Capital, Retained Earnings, and Financial Reporting

52問 • 1年前

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Distributions to shareholders of cash, property or stocks from unrestricted retained earnings on the basis of all issued and fully paid shares, and all subscribed par value shares except treasury shares are called _____

dividends

Dividend declarations reduce _____.

retained earnings

Other less common situations that cause increases or decreases in ______ are as follows: Debits resulting from reissuance of treasury stocks below cost and loss on retirement of treasury stocks Debits or credits for prior period errors

retained earnings

Are errors discovered in the current area that are of such significance that the financial statements of one or more prior periods can no longer be considered to have been reliable at the date of their issue.

prior period errors

A debit balance in the retained earnings account resulting from accumulated losses is called a _______.

deficit

Retained earnings may be ______ or ______, and unrestricted or unappropriated.

restricted or appropriated

Retained earnings may be restricted or appropriated, and ______ or ______.

unrestricted or unappropriated

_______ are free and can be declared as DIVIDENDS.

UNRESTRICTED RETAINED EARNINGS

UNRESTRICTED RETAINED EARNINGS are free and can be declared as ______.

DIVIDENDS

______ restrictions may be legal, contractual or voluntary.

Retained earnings

It is an owner's equity account representing claim on all assets in general and not on any asset in particular.

retained earnings

_____ of the Corporation Code states that dividends should only be declared out of the unrestricted retained earnings.

Section 43

Section 43 of the Corporation Code states that _____ should only be declared out of the unrestricted retained earnings.

dividends

Section 43 of the Corporation Code states that dividends should only be declared out of the ______.

unrestricted retained earnings

Dividends may take the form of ____, ____, or additional _____ of the corporation.

cash property shares of stock

The declaration and payment of dividends involve three important dates and they are:

date of declaration date of record date of payment

On the ______, the board of directors will adopt a resolution declaring that a dividend is to be paid.

date of declaration

______ are declared solely by the board of directors while Share Dividends well necessitate the concurrence of at least 2/3 of the outstanding shareholders.

Cash dividends

Cash Dividends are declared solely by the board of directors while _____ will necessitate the concurrence of at least 2/3 of the outstanding shareholders.

share dividends

Legally, declared _____ are obligations of the firm.

dividends

An entry is made debiting Retained Earnings and crediting a dividend liability or Shares Distributable account.

date of declaration

Dividends to be paid in cash or property become a liability on this date.

date of declaration

______ DISTRIBUTIONS OF NON-CASH ASSETS TO OWNERS was developed by the international financial reporting interpretation Committee and issued by the International Accounting Standards Board in November 2008. It's effectivity date is July 1, 2009

IFRIC 17

IFRIC 17 ______ was developed by the international financial reporting interpretation Committee and issued by the International Accounting Standards Board in November 2008. It's effectivity date is July 1, 2009

DISTRIBUTIONS OF NON-CASH ASSETS TO OWNERS

IFRIC 17 DISTRIBUTIONS OF NON-CASH ASSETS TO OWNERS was developed by the _______ and issued by the International Accounting Standards Board in November 2008. It's effectivity date is July 1, 2009

International Financial Reporting Interpretation Committee

IFRIC 17 DISTRIBUTIONS OF NON-CASH ASSETS TO OWNERS was developed by the International Financial Reporting Interpretation Committee and issued by the _____ in November 2008. It's effectivity date is July 1, 2009

International Accounting Standards Board

IFRIC 17 DISTRIBUTIONS OF NON-CASH ASSETS TO OWNERS was developed by the International Financial Reporting Interpretation Committee and issued by the International Accounting Standards Board in _____. It's effectivity date is _____.

November 2008 July 1, 2009

A list of shareholders entitled to the declared dividends is prepared at the _____.

date of record

If an investor buys a share of stock after this date, he will not receive the dividend.

date of record

If an investor buys a share of stock after the date of record, he will not receive the dividend. The share is said to be traded _____.

ex-dividend

The corporation settles its liability on this date.

date of payment

An entry is made debiting the dividend liability or shares distributable account and crediting cash, property distributed or share capital.

date of payment

In declaring this type of dividends, a corporation must have both an appropriate amount of retained earnings and the necessary amount of cash.

cash dividends

Majority of dividends distributed by corporations is paid in _____

cash

Dividends on par value shares are stated as a certain _____ of the par value.

percentage

As to no-par value shares, the dividends are stated at a certain ______.

amount per share

When the board of directors declares this dividend, an entry is made debiting retained earnings and crediting cash dividends payable.

cash dividend

It is worthwhile to reiterate that with the exception of treasury shares, all ____ and _____ shares, and all _____ par value shares are entitled to dividends when declared.

issued and fully paid subscribed

______ shares are considered as legally issued only when fully paid.

No-par value

A corporation may distribute to shareholders additional shares of the entity's own share as _______

share dividends

Are fundamentally different from cash or property dividends because these do not transfer assets to the shareholders.

shared dividends or bonus issues

This type of dividend affects only the accounts within the shareholders' equity.

share dividends

It increases the total share capital and decreases the retained earnings account.

share dividends

Are dividends in which the additional shares issued are less than 20%.

small share dividends

We share dividends are recorded by transferring from retained earnings to share capital the FAIR MARKET VALUE of the additional shares to be issued.

small share dividend

______ (or the temporary account, ______) is debited for the fair market value of the share dividends.

Retained earnings share dividends declared

Are dividends in which the additional shares issued are 20% or more.

large share dividend

If the shared dividend is 20% or more of the previously outstanding shares such that the effect is to reduce materially the market value per share, then only the _____ is credited to the ordinary shares with a corresponding debit to retained earnings.

par or stated value

Large share dividends are recorded at ______.

par value

A retained earning statement is normally divided into two major sections:

appropriate unappropriated

This section presents the beginning balance of the retained earnings appropriated account, any additions or deductions during the period, and ending balance.

appropriated

The section shows the beginning balance of the retained earnings unappropriated account, correction of prior period error, profit or loss for the period, dividends, transfers to and from the appropriated and unappropriated accounts, and the ending balance.

unappropriated

Business Finance

Sab Sescon · 46問 · 2年前

Business Finance