CONVERTIBLE

Question 1

Replacement of outstanding shares by a smaller number of shares with a corresponding increase in the par or stated value of the share capital

Answer 1

Reverse Share-split

Question 2

The reacquisition of issued shares without the intention of reissue at some future date

Answer 2

Retirement at Share Capital

Question 3

A corporation does not earn a profit or incur a loss by selling or buying its own stock

Answer 3

TRUE

Question 4

The number of treasury shares is equal to the difference between

Answer 4

Issued and Outstanding shares

Question 5

Preference shares that can be converted into ordinary shares at the option of the holder

Answer 5

Convertible Preference Shares

Question 6

Retained earnings set aside equal to the cost of treasury shares upon acquisition

Answer 6

Retained Appropriated for Treasury shares

Question 7

Shares issued to shareholders but subsequently reacquired by the corporation

Answer 7

Treasury Shares

Question 8

The acceptable method of accounting for treasury shares

Answer 8

Cost method

Question 9

The purchase of treasury shares decrease the number of

Answer 9

Outstanding Shares

Question 10

The acquisition of treasury shares reduces the number of shares issued

Answer 10

FALSE

Question 11

The amount recorded as paid-in capital from donated shares upon sale of donated capital sales

Answer 11

Selling Price

Question 12

A reduction in the par or stated value of the share capital accompanied by a proportionate increase in the number of shares outstanding

Answer 12

Share-Split-up

Question 13

The effect of share split up on par or stated value

Answer 13

Decrease

Question 14

At the end of the financial reporting period, ordinary shares issued would exceed ordinary shares outstanding as a result of the

Answer 14

Purchase of Treasury Shares

Question 15

Convertible preference share capital allows the holder to exchange the shares for ordinary shares

Answer 15

TRUE