CORPORATION Flashcards
The minimum amount upon which no-par, no stated value share capital are to be subscribed or issued
P5.00
A value that may be assigned to no-par stock by the board of directors of a corporation
Stated Value
A subscriber who fails to pay his subscription balance
Delinquent Subscriber
A stock certificate is issued to the subscriber upon full payment of his subscription
FALSE
The cost of organizing a corporation should be
Expensed in the year of Corporation
The asset recognized upon incorporation of a partnership which represents the excess of the value of the share capital issued by the corporation over the fair value of the net assets of the partnership transferred to the new corporation
GOODWILL
The maximum number of years life of a corporation
50 years
A corporation organized under Philippine laws
Domestic Corporation
It is legal to issue share capital at par or at more than par but not less than par
TRUE
Preference shares that have no claim on any prior year dividends that may have passed
Non-cumulative Preference shares
Class of share capital which entitles the holder to an equal or pro-rata division of profits without any preference or advantage over any class of stock
Ordinary Share Capital
An artificial being created by operation of law formed by five or more persons
Corporation
A share capital issued to a shareholder
Outstanding Share Capital
The maximum number of shares of stock that the government gives a corporation permission to issue is the
Authorized Shares
Share capital subscription in a corporation are payable only in cash
FALSE
A nominal value stated on the face of the stock certificate and in the articles of corporation
Par Value
The account charged for all expenses relating to deliquent subscription
Receivable from Highest Bidder
When there is no bidder for deliquent subscription, the subscribed share will be
Issue in the name of the corporation
All incorporators are shareholders but not all shareholders are incorporators
TRUE
Cost incurred in connection with the incorporation. They include cost of printing stock certifications and filling fees
Pre-operating costs/ Organization costs
The minimum percentage of the subscription in share capital that has to be paid by the incorporators
25%
The document evidencing share capital ownership in a corporation
Stock Certificate
Not typically a characteristic of preference shares
Preference as to voting rights
Convertible preference shares allow the issuing corporation to redeem the shares
FALSE
The account credited for the excess of the subscription or issue price over the stated value of ordinary share capital
Paid-in capital in excess of stated value
It represents residual ownership equity
Ordinary Share Capital
The process of formalizing the organization of a corporation
Incorporation
The minimum percentage of authorized share capital that has to be subscribed by incorporators
25%
Class of share capital which enables the holder to enjoy preferences as to receipt as to receipt of dividends
Preference Share Capital
The persons who originally formed th corporation
Incorporators
