Acct 101

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

1. True
2. False

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

1. True
2. False

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

1. True
2. False

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

1. True
2. False

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

1. True
2. False

6) Dividends are only paid in cash.

1. True
2. False

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

1. True
2. False

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

1. True
2. False