Accounting 100

1.Employees are not eligible to purchase their employers shares.

True

False

2. Share capital represents the amount that investors paid for the shares when they were initially issued by the company.

True

False

3. Accumulated other comprehensive income is a revenue account reported on the statement of income.

True

False

4) Convertible preferred shares are convertible to common shares at the option of the shareholder.

True

False

5) Shares that have been sold by the company are known as issued shares.

True

False

6) Dividends are only paid in cash.

True

False

7) Stock splits do not impact the value of the share capital or retained earnings accounts.

True

False

8) The price/earnings ratio provides a measure of the return to common shareholders.

True

False

9) The shareholders equity section of the statement of financial position, includes all of the following accounts except for

a) contributed surplus.

b) accumulated OCI.

c) dividends.

d) share Capital.