IA Finals Flashcards
Ownership depends on the amount of shares. And there is an economic transaction
Issuance of Shares
I. Date of Record
II. Date of Payment
III. Date of Declaration
In relation to corporate dividends, arrange the above dates in chronological order.
III
I
II
The entry to record a donation of equipment from an internal donor includes _______.
a) a debit to donated capital account
b) a credit to donated capital account
c) a debit to donated income account
d) a credit to donated income account
b) a credit to donated capital account
Refers to the amount of money a company receives in excess of the par value or stated value of its shares.
Share Premium
It is the maximum number of shares that can be issues. It has no economic transaction.
Authorized Capitalization (Memorandum Entry)
The sum of a company’s earning over a period of time after deducting dividends.
Retained Earnings
A partner is considered ______ if his personal assets exceed his personal liabilities.
Solvent
The entry to record a donation of equipment from an external donor includes ______.
a) a debit to donated capital account
b) a credit to donated capital account
c) a debit to donated income account
d) a credit to donated income account
d) a credit to donated income account
This refers to the change in partnership relations.
Partnership Dissolution
Admission of a new partner can be done through ____.
a) Purchase
b) Investment
c) Sale
d) Either A or B
d) Either A or B
It is the sum of the capital balances of the old partners and the actual investment of the new partner.
Total Contributed Capital
It has no voting rights, priority in dividends, par value only
Preference Shares (Preferred Stock)
Cash priority program is prepared
a) Each time cash is distributed to partners in an installment liquidation
b) Each time a non-cash asset is realized
c) To determine the order and amount of cash each partner will receive as it comes available for distribution
d) All of the above
C
It is the total capital of the partnership after considering capital credits given to each of the partners.
Total Agreed Capital
This class of corporation issues shares or stocks, business or profit-oriented and the profit can be distributed to stockholders.
Stock Corporation
This is the process whereby assets are realized on a piecemeal bases and cash is distributed to partners on a periodic bases as it becomes available even before all non-cash assets are realized.
Installment Liquidation
The minimum amount of money that a company must have in order to protect its creditors.
Legal Capital
This signifies a unit of equity ownership in a company.
Shares
This refers to a situation wherein a new person joins an existing partnership, which causes the same to be dissolved.
Admission of a new partner
This class of shares has voting rights. If there is one issuance only, it should be this type of share because it has voting rights. It may be stated or par value.
Ordinary Shares (Common Shares)
Shares can be issued at an amount _______.
equal to its par value or higher than its par value
This refers to all the shares issued and sold by a company that are not held by the company itself, including a company’s common stock held by individual investors, institutional investors and restricted shares held by company officers and insiders.
Outstanding Shares
This class of corporation has no shares, more on purpose than profit, the profit is not distribured to owners, and use their profit in operating or charity.
Non-Stock Corporation
This is prepared every time the partnership plan to distibute cash during an installment liquidation.
Schedule of Safe Payments
________ are shares issued and reaquired by the corporation.
Treasury Shares
This is a process whereby the distribution of cash to partners is done only after all the non-cash assets have been realized and the obligation with the partnership outside creditors have been settled.
Lump sum liquidation
The process of converting non-cash into cash.
Realization
______ partner is one whose personal liabilities exceed his personal assets.
Insolvent
Which of the following does not affect the partnership capital before and after dissolution
Admission of a new partner by purchase
This refers to the nominal value of a share or stock which can be seen in the articles of incorporation or stock certificate.
Par Value
This refers to the winding up of partnership affairs.
Partnership Liquidation
In share subscription, share capital is credited upon ______.
Full payment
Is an artificial being created by operation of law having the right of succession and the powers, attributes, and properties expressly authorized by law or incidental to its existence.
Corporation
The national government regulatory agency charged with supervision over the corporate sector.
SEC
The money a company raises by issuing common or preferred stock.
Share Capital
