Exam 10: Reporting and Analysing Equity

Please complete the following statements: -For an item to be classified as a prior period error it must have resulted in the presentation of ______________ information in the financial statements.

Indicate the respective effects of the declaration of a cash dividend on the following sections of the statement of financial position:

Match the descriptions with their terms: -The limit of liability of owners of a company to any unpaid amount of capital.

Irregular items, which if they occur, are required to be disclosed in the financial statements include all of the following except:

Match the descriptions with their terms: -A pro rata distribution of profit paid in cash to shareholders.

Cricket Ltd has the following items in its accounting records for the current year: 1. 200,000 $2 issued and paid up ordinary shares 2. Opening Retained earnings $40,000 3. Dividends declared and paid during the year $20,000 4. Transfer from Retained earnings to General reserve $15,000 Required: (a) Prepare journal entries to record items 3. and 4. (b) Show the Note to the financial statements providing details of the movements in the Retained earnings account during the year (c) Prepare an extract from the equity section of Cricket Ltd's statement of financial position at the end of the year.

A public company may have a maximum of:

A share split has the following impact on total equity:

Shareholders of a company directly elect:

A dividend may take any one of three forms. These are:

Match the descriptions with their terms: -A form of corporation, evidence of ownership in which is provided by shares.

At 31 December 2019 Trapezium Ltd has the following components of Equity: On 31 December 2019, the directors of the company declared a 10% share dividend to be paid out of the balance in the Retained earnings account on 5 January 2020. Required: (a) Prepare journal entries to record these share transactions. (b) Calculate the balance of the Retained earnings after these share transactions have taken place.

Return on equity is a tool that is used to:

Topaz Ltd has the following share transactions during March. Record all of these share transactions for Topaz Ltd.

The board of directors of Westlake Ltd declared a cash dividend of $2.50 per share on 22,000 ordinary shares on 15 July 2019. The dividend is to be paid on 15 August 2019, to shareholders of record on 31 July 2019. The correct entry to be recorded on 15 July 2019 will include a:

The accumulated profits that have not been distributed to shareholders are classified as:

The ratio of Total Ordinary Cash Dividends declared divided by Profit, is used to measure the:

Identify (by letter) each of the following characteristics as being an advantage (A) or a disadvantage (D) of the company form of business organisation. A = Advantage D = Disadvantage -Separation of ownership and management

The issue of shares to identified investors is known as a:

A report that contains the details of a proposed public share issue is a: