The most common form of a corporation is a:

Group of answer choices

partnership.

company.

trust.

sole proprietorship.

Next

Which of the following is not true of a company?

Group of answer choices

it may sue and be sued.

it may buy, own, and sell property.

it may enter into binding legal contracts in its own name.

the acts of its owners bind the company.

The purpose of a share split is to increase the:

Group of answer choices

dividend payout rate of the company.

market price of a company's shares.

retained earnings of the company.

marketability of the shares by lowering the market price.

Which one of the following is not considered an advantage of the company form of organisation?

Group of answer choices

continuous life.

government regulation.

limited liability of shareholders.

separate legal existence.

If a company declares a 10% share dividend on its ordinary shares, the account to be debited on the date of declaration is:

Group of answer choices

Paid-up Capital.

Retained Earnings.

Ordinary Shares.

Ordinary Share Dividend Payable

When preparing the financial statements of Somersby Ltd, the accountant found the following information: Opening balance of Retained Earnings $15,000; Interim Dividends paid $2,500; Profit earned $20,000; Dividends Declared $5,000.The closing balance of Retained Earnings for Somersby Ltd is:

Group of answer choices

$30 000.

$27,500.

$15 000.

$7,500.

A company records a dividend-related liability:

Group of answer choices

when dividends are in arrears.

on the payment date.

on the declaration date.

on the record date.

Prior period errors must be corrected:

Group of answer choices

retrospectively.

in the subsequent accounting period.

in the next accounting period.

when they are detected.

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

Group of answer choices

dividends payable

retained earnings.

share capital.

non-current liabilities.

A company would be expected to generate small amounts of cash from operations during the:

Group of answer choices

introductory phase.

growth phase.

maturity phase.

decline phase.