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What is the effect on share premium and retained earnings

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Reference no: EM132786672

Question 1: Authorized shares minus unissued shares is issued shares. Outstanding shares and treasury shares is

a. unissued shares.
b.subscribed shares.
c. issued shares.
d. authorized shares.

Question 2: When ABC Corp. reduces the par value of the ordinary shares, what is the effect on share premium and retained earnings?

a. No effect, no effect.
b. Increase, no effect.
c. No effect, increase.
d. Increase, increase

Reference no: EM132786672

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