Statements Of Income And Comprehensive Income

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The Framework for Financial Reporting
Accounting Judgements
Statements of Income and Comprehensive Income
Statements of Financial Position and Changes in Equity; Disclosure Notes
The Statement of Cash Flows
Revenue Recognition
Financial Assets: Cash and Receivables
Cost-Based Inventories and Cost of Sales
Long-Lived Assets
Depreciation, Amortization, and Impairment
Financial Instruments: Investments in Bonds and Equity Securities

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Question 1

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Businesses engage in many transactions that are unaffected by the form of the business: proprietorship,partnership,or corporation.

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Question 2

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The primary sources of owners' equity must be separately identified in the accounts.

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Question 3

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Preferred shareholders normally have the same voting rights as common shareholders.

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Question 4

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Shareholders in a corporation usually have limited liability.

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Question 5

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The contributed capital accounts should be classified by source.

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Question 6

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Retained Earnings restrictions are usually imposed on a company by a third party.

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Question 7

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Before a company can issue a property dividend in shares of another company,it must ensure that the shares are recorded at market value.The dividend is then paid out of the company's contributed capital accounts rather than its retained earnings.

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Question 8

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Under IFRS,companies are required to disclose the components of their shareholders' equity along with an explanation of any shareholder equity transactions during the year.

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Question 9

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Preferred shares generally have fewer voting rights than common shareholders but receive preferential treatment (relative to the common shareholders)in the event of the company's liquidation.

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Question 10

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All unrealized gains and losses,regardless of origin,flow through Other Comprehensive Income.

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Question 11

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Retained earnings,if not designated otherwise,represents the unappropriated portion of retained earnings.

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Question 12

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Total retained earnings include both appropriated and unappropriated retained earnings.

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Question 13

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Property dividends are dividends that the corporation distributes in the form of non-cash assets.

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Question 14

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All Contributed Capital accounts may carry either a debit or a credit balance,depending on the transactions from which the account balance originated.

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Question 15

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When a corporation declares a small stock dividend,it should capitalize the par value of the shares.

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Question 16

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A large stock split should be accounted for by capitalizing the current market value of the stock.

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Question 17

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A stock dividend and a stock split are identical in all respects for the corporation issuing the dividend or splitting the stock.

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Question 18

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When stock rights are issued to current shareholders,it may require more than one such right to later acquire one additional share of the stock covered by the rights.

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Question 19

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Liquidating dividends are similar to stock dividends because neither one reduces total stockholders' equity.

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Question 20

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Dividends are paid when declared.

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