S1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. S2: Preference share dividend appear under the retained earnings section of the statement of changes in equity A. True, True B. False, False C. True, False D. False True

S1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. S2: Preference share dividend appear under the retained earnings section of the statement of changes in equity A. True, True B. False, False C. True, False D. False True

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 11MCQ

See similar textbooks

Similar questions

Which of the following statements is true about vertical analysis? O a. It is not useful for analyzing changes in financial statements over time O b. It is useful in analyzing relationships within a financial statement. O c. Each line item is expressed as a percent of stockholders' equity. O d. The amount of change in each line item is calculated.
Which of the following does not appear in a statement of retained earnings? a. Net loss b. Prior period error c. Preference share dividend d. Other comprehensive income
Which of the following will be subtracted while calculating ending equity under statement of changes in equity? a. Drawings b. Gross profit c. Reserves and surplus d. Net profit
1. Which of the following would appear first in a statement of retained earnings? Choices; Cash dividend Prior period error Net income Share dividend 2. Which of the following does not appear in a statement of retained earnings? Choices; Net loss Preference share dividend Other comprehensive income Prior period error
True or False: Dividends declared and paid result in a decrease to the common stock's account balance. Select one: True False
Which statement below is true? Retained earnings unappropriated is shown as part of reserves in the preparation of statement of changes (A in equity. B Comprehensive income is shown in the statement of changes in equity. For each component of equity, the effects of changes in accounting estimate and correction of errors are reflected in the statement of changes in equity. The statement of changes in equity is a formal statement that shows the movements in the elements or D components of the profit or loss.
Corrections of errors in prior period are included inA. Other comprehensive incomeB. Net incomeC. Retained earningsD. Share premium
a. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio is normally higher? Why?
1 3. Which of the following should be presented in the statement of changes in equity? a. For each component of equity, the effects of retrospective restatement recognized in accordance with PAS 8. b. For each component of equity, comprehensive income by item. an analysis c. The amount of dividends recognized as distributions to owners during the period and the related amount of dividends per share. d. All of these. of other 7
The correct formula for the calculation of earnings per share is ________. A. B. C. D.
Required Indicate the effect of each of the following transactions on (1) the current ratio, (2) working capital, (3) stockholders' equity, (4) book value per share of common stock, and (5) retained earnings. Assume that the current ratio is greater than 1:1 (Indicate the effect of each transaction by selecting "+" for increase, "-"for decrease, and leave the cell blank if there is no effect.). a. Collected account receivable. b. Wrote off account receivable. c. Converted a short-term note payable to a long-term note payable. d. Purchased inventory on account. e. Declared cash dividend f. Sold merchandise on account at a profit. g. Issued stock dividend h. Paid account payable. i. Sold building at a loss. Retained Value Earnings Current Working Stockholders Book Ratio Capital Equity
In a balance sheet, the total of common stock and retained earnings are denoted as Select one: a. Common Equity b. Due Equity c. Common Perpetuity d. Preferred equity