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The dividends is always declared on a) none of those options b) Issue price of the shares c) Par value of the shares d) Latest market value of the shares     If Treasury stock Is purchased: a) Shareholders equity will increase b) Shareholders equity will decrease c) Assets will increase d) There will be no effect on shareholders equity Which of the following item must appear first in shareholders equity section a) Paid in capital in excess of par, Preferred stock b) Issued common stock c) Authorized Preferred stock d) Authorized common stock

Accounting Oct 01, 2020

The dividends is always declared on

a) none of those options

b) Issue price of the shares

c) Par value of the shares

d) Latest market value of the shares

 

 

If Treasury stock Is purchased:

a) Shareholders equity will increase

b) Shareholders equity will decrease

c) Assets will increase

d) There will be no effect on shareholders equity

Which of the following item must appear first in shareholders equity section

a) Paid in capital in excess of par, Preferred stock

b) Issued common stock

c) Authorized Preferred stock

d) Authorized common stock

Expert Solution

Dividend is always declared on par value os shares. It has nothing to do with issue pri e or market value of share.

Option C (par value) is correct.

Q2. Entry is . Treasury stock Dr.  

To cash

Hence shareholder equity decreased as Treasury stock is represented in stockholder section as reduction of share capital.

Option B is correct.

Q3 Option C is correct. Authorised preferred stock

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