Reference no: EM132939911
Problem 1: When a corporation regularly makes P1,000,000 annual profit, which of the following will cause earnings per share to be better than other events?
A. Received by corporation 10,000 shares of its ordinary shares as donation from a shareholder.
B. Declaration of share split.
C. Re-issuance of 5,000 treasury ordinary stock at less than the cost.
D. Sale of unissued ordinary shares at more than par value.
Problem 2: Which of the following statements is correct?
A. When an entity has one class, preference shares can be issued.
B. Only no-par Ordinary Shares can be issued by the corporation.
C. No-Par Preference Shares can be issued by the corporation.
D. A no-par Ordinary Share may be issued at least P5.00 per share.
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