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    AC 1104 Theories

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    Karl Exac
    This document contains 8 multiple choice questions testing knowledge of accounting theories related to corporations and shares. The answer key indicates that the questions cover topics such as a corporation's liability for a shareholder's debts, characteristics of the corporate form, methods of accounting for share capital, types of shares and their characteristics, and IAS equivalents of accounting terms. Correct answers include that a corporation is not liable for a shareholder's personal debts, centralized authority is not a characteristic of corporations, and the IAS term for retained earnings is accumulated profits and losses.

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    AC 1104 Theories

    Uploaded by

    Karl Exac
    21 views3 pages
    This document contains 8 multiple choice questions testing knowledge of accounting theories related to corporations and shares. The answer key indicates that the questions cover topics such as a corporation's liability for a shareholder's debts, characteristics of the corporate form, methods of accounting for share capital, types of shares and their characteristics, and IAS equivalents of accounting terms. Correct answers include that a corporation is not liable for a shareholder's personal debts, centralized authority is not a characteristic of corporations, and the IAS term for retained earnings is accumulated profits and losses.

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    AC_1104_Theories.docx

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    This document contains 8 multiple choice questions testing knowledge of accounting theories related to corporations and shares. The answer key indicates that the questions cover topics such as a corporation's liability for a shareholder's debts, characteristics of the corporate form, methods of accounting for share capital, types of shares and their characteristics, and IAS equivalents of accounting terms. Correct answers include that a corporation is not liable for a shareholder's personal debts, centralized authority is not a characteristic of corporations, and the IAS term for retained earnings is accumulated profits and losses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views3 pages

    AC 1104 Theories

    Uploaded by

    Karl Exac
    This document contains 8 multiple choice questions testing knowledge of accounting theories related to corporations and shares. The answer key indicates that the questions cover topics such as a corporation's liability for a shareholder's debts, characteristics of the corporate form, methods of accounting for share capital, types of shares and their characteristics, and IAS equivalents of accounting terms. Correct answers include that a corporation is not liable for a shareholder's personal debts, centralized authority is not a characteristic of corporations, and the IAS term for retained earnings is accumulated profits and losses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    AC 1104 Theories

    1. Which of the following statements is or are true?


    Statement 1: A corporation cannot be held liable for personal indebtedness of a shareholder
    Statement 2: Share with par value maybe issued for a consideration less than Php5 per share
    a. 1 only
    b. 2 only
    c. Both 1 and 2
    d. Neither 1 or 2
    2. Which of the following statements is or are true?
    Statement 1: If a shareholder dies, the corporation is dissolved
    Statement 2: Shares of stocks are not transferrable as they are not considered as assets of the
    corporation
    a. 1 only
    b. 2 only
    c. Both 1 and 2
    d. Neither 1 or 2
    3. One of the following is not a characteristic of the corporate form of organization
    a. Limited liability of shareholders
    b. Mutual agency
    c. Continuous existence
    d. Centralized authority
    4. Which of the following statements is or are true?
    Statement 1: If the source of an asset is the net income earned by the corporation the
    shareholders equity account retained earnings would be debited.
    Statement 2: If a corporation reduces its assets by purchasing its stocks from a shareholder, the
    contra equity account treasury stock is credited.
    a. 1 only
    b. 2 only
    c. Both 1 and 2
    d. Neither 1 or 2
    5. Which of the following statement/s are false?
    Statement 1: Subscribed share capital is the portion of authorized share capital that has been
    subscribed and fully paid
    Statement 2: Outstanding share are the shares issued and in the hands of the shareholders
    a. 1 only
    b. 2 only
    c. Both 1 and 2
    d. Neither 1 or 2
    6. Which of the following statements is/are true?
    Statement 1: Two alternative methods of accounting, it may be authorization and issuance of
    share capital are memorandum method and journal entry method

    This study source was downloaded by 100000856735642 from CourseHero.com on 11-14-2022 05:26:05 GMT -06:00

    https://www.coursehero.com/file/54744517/AC-1104-Theoriesdocx/
    Statement 2: If the method of accounting of share capital is not indicated in the problem then
    the assumption is journal entry
    a. 1 only
    b. 2 only
    c. Both 1 and 2
    d. Neither 1 or 2
    7. Which of the following statements is/are true?
    Statement 1: Ordinary shares have voting rights
    Statement 2: Treasury shares have no voting rights as long such stocks remain in the treasury
    a. 1 only
    b. 2 only
    c. Both 1 and 2
    d. Neither 1 nor 2

    8. Which of the following statement is/are true?


    Statement 1: The equivalent IAS term of additional paid in capital is contributed capital
    Statement 2: The equivalent IAS term for retained earnings is accumulated profits
    a. 1 only
    b. 2 only
    c. Both 1 and 2
    d. Neither 1 nor 2

    This study source was downloaded by 100000856735642 from CourseHero.com on 11-14-2022 05:26:05 GMT -06:00

    https://www.coursehero.com/file/54744517/AC-1104-Theoriesdocx/
    Answer Key

    1. C
    2. D
    3. B
    4. D; Statement 1: Retained earnings is credited if net income, Statement 2: Cash is credited,
    treasury stock is debited
    5. A
    6. A
    7. C
    8. D; Statement 2: accumulated profits AND LOSSES

    This study source was downloaded by 100000856735642 from CourseHero.com on 11-14-2022 05:26:05 GMT -06:00

    https://www.coursehero.com/file/54744517/AC-1104-Theoriesdocx/
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