Reference no: EM132945753

True or False

Question 1: Share Capital includes issued shares at its par or stated value, subscribed shares (net of long-term subscription receivables), and stock dividend distributable.

Question 2: When the value of the asset received in exchange for stocks is overstated, the share capital is said to hold secret reserves.

Question 3:  Partnership liquidation is always preceded by partnership dissolution.

Question 4:  A corporator whose name is mentioned in the Articles of Incorporation is an incorporator.

Question 5: The chronological and numerical records of stock certificates issued are listed in the stockholder's ledger.

Question 6:  If the FMV of stocks is greater than the PV at the time of stock declaration of 18%, the gain from the issuance of stock dividends at more than par has no effect on Total Stockholder's Equity.

Question 7: Share Capital and Additional Paid-in Capital is known as the legal capital.

Question 8:  To compute for Earnings per Share, subtract from the Net Income the earnings attributable to ordinary shares divided by the outstanding ordinary shares.

Question 9:  Equity identified with Preference share Capital (cumulative) generally includes the liquidation value of the outstanding shares and any claim on current and dividend in arrears.

Question 10:  If there are 5,000 authorized shares and 1,000 shares in treasury which includes 300 shares acquired through donation, we can assume that 4,000 shares are outstanding shares.