Exam 10: Corporations: Share Capital and Retained Earnings

The date of record is the date that:

A corporation in Canada can only incorporate through the federal government.

What does an organization's founders need to do to incorporate their business?

What are the effects and purpose of a stock split?

Does a company have to sell its shares directly to shareholders only?

What is an organization authorized to sell once it has become a corporation?

Why are shares not referred as "no-par shares"?

Do treasury shares increase or decrease the company's shares that are outstanding?

Aztec Industries has 100,000 common shares outstanding and 10,000 $2 cumulative preferred shares. If the company declares a total dividend of $35,000, how much will be distributed to common shareholders?

Which of the following business types dominates by the amount of business transacted?

The Harvester Company issued 40 shares trading at $20/share to its accountant in full payment for her $900 fee for assisting in setting up the new company. The entry to record the issuance of the stock would include a:

Cody's Western Wear has 2,000 common shares outstanding. During the current year, the company distributed a 10% stock dividend. The market value of the stock at that time was $16/share. After the distribution, should Cody's total shareholders' equity change? If so, by how much?

What is the difference between a stock split and stock dividend?

Identify the three reasons companies issue stock dividends.

Many companies raise capital by issuing shares directly to shareholders or by using an underwriter.

Under IFRS and Canadian ASPE, how should non-monetary exchanges be measured?

Identify the advantages and disadvantages of the corporate form of business.

Explain how the recording of the purchase of treasury shares differs when cash paid is less than or greater than the average cost.

Identify and explain the four basic rights of a shareholder.