Which of the following is not true of a company?

Group of answer choices

it may sue and be sued.

the acts of its owners bind the company.

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

it may buy, own, and sell property.

A report that contains the details of a proposed public share issue is a:

Group of answer choices

constitution.

prospectus.

record.

regulation.

A share split has the following impact on total equity:

Group of answer choices

removal of equity from the statement of financial position.

increase.

no change in the total of equity.

decrease.

The cumulative effect of the declaration and payment of a cash dividend on a companys financial statements is to:

Group of answer choices

decrease total assets and equity.

decrease total liabilities and equity.

increase total assets and equity.

increase total expenses and total liabilities.

The board of directors of Westlake Ltd declared a cash dividend of $2.50 per share on 22,000 ordinary shares on 15 July 2016. The dividend is to be paid on 15 August 2016 to shareholders on record on 31 July 2016. The correct entry to be recorded on 15 August 2016 will include a:

Group of answer choices

Dr to Dividends payable

Cr to Retained earnings.

Cr to Dividends payable.

Dr to Retained earnings.

When a company changes from one acceptable accounting method to another the cumulative effect of the change is disclosed:

Group of answer choices

in the statement of changes in equity

as a note to the financial statements

in the statement of cash flows

in the income statement

Which of the following items is not required to be disclosed in the notes explaining movements in the Retained Earnings account for a year?

Group of answer choices

Opening balance of Retained Earnings.

Closing balance of Retained Earnings.

Ordinary Shares issued.

Dividends declared.

The ratio of Total Ordinary Cash Dividends Declared divided by Profit, is used to measure the:

Group of answer choices

dividend turnover rate.

return on assets.

dividend payout.

return on cash.