Exercise Set 4 (True or False) Part III Flashcards
Payment of cash dividend reduces a corporation’s accumulated profits. True or False?
False. Cash dividend payment does not reduces the corporation’s accumulated profits.
Treasury shares are entitled to receive any form of dividends. True or False?
False. [*What are entitle to receive any form of dividends?]
Once the reason behind any appropriation made by the corporation in its Accumulated Profits account ceases to exists, a reversal should be made. True or False?
True
A reversal of any appropriation in a corporation’s Accumulated Profits does not affect total shareholders’ equity. True or False?
True
A 1-for-8 share dividend declaration is considered as large share dividend. True or False?
False. [*Why not?]
Appropriations made out of corporation’s free accumulated profits reduces total shareholders’ equity. True or False?
False. [*Why not?]
Treasury shares are deducted in computing shareholders’ equity. True or False?
True
Share dividend declaration does not affect shareholders’ equity. True or False?
True
Sale of donated shares does not affect shareholders’ equity. True or False?
False. They do
The amount presented as total shareholders’ equity in the statement of changes in shareholders’ equity also appears in the statement of financial position. True or False?
True
Subscriptions Receivable is generally deducted when computing for total shareholders’ equity. True or False?
True
Reissuance of treasury shares does not affect shareholders’ equity. True or False?
False. It does affect shareholders’ equity
Net loss for the period increases total shareholders’ equity. True or False?
False. It decreases
Issued and subscribed shares are both considered in computing for shareholders’ equity. True or False?
True
Cash dividends declared decreases total shareholders’ equity. True or False?
True
