Exam 11: Reporting and Analyzing Shareholders Equity

Use the following information for questions On January 1, BearBack Corporation had 300,000 common shares issued.On April 10, the company declared a 10% stock dividend to be distributed on April 30.The market value of the shares was $7 on April 10 and $10 on April 30. -The entry to record the transaction of April 30 would include a

A debit balance in the Retained Earnings account is called a deficit.

The statement of changes in equity discloses changes in total shareholders' equity for the period as well as changes in each shareholders' equity account.

All of the following are advantages of the corporate form of organization except

The market capitalization of a company is calculated by multiplying the number of shares authorized by the share price at any given date.

When shares are traded on the secondary market it means

Which of the following usually represents the largest number of common shares?

The disclosure of earnings per share is

Apricot Inc.is repurchasing 25,000 common shares.The price is $4.25/share and the average price is $4.00.Assuming that there is a contributed surplus balance of $5,000, the entry to record the transaction would be

Irwin Inc.had 300,000 common shares before a stock split occurred and 600,000 shares after the stock split.The stock split was

For a corporation reporting under IFRS, when shares are issued for a noncash consideration and a ready market for the shares exists, they are recorded at

Comprehensive income/(loss) includes

Those most responsible for the major policy decisions of a corporation are the

Which of the following would not be true of a privately held corporation?

If a corporation declares a 10% stock dividend on its common shares, the account to be debited on the date of declaration is

Baria Inc.is repurchasing 10,000 common shares.The price is $5.00/share and the average price is $5.10.Assuming that there is a contributed surplus balance of $5,000, which accounts will be affected by the transaction?

The sale of common shares should be recorded as a

Use the following information for questions On July 15, 2022, the board of directors of George Easton Limited declared a cash dividend of $0.50 per share on 84,000 common shares.The dividend is to be paid on August 15, 2022, to shareholders of record on July 31, 2022. -The correct entry to be recorded on August 15, 2022 will include a

Most companies in Canada have an unlimited number of authorized shares.

Cash dividends are not a liability of the corporation until they are declared by the board of directors.