41. Restricted retained earnings are available for preference share dividends but unavailable for ordinary share dividends.
42. A detailed equity section in the statement of financial position will list the names of individuals who are eligible to receive dividends on the date of record.
43. Ordinary Share Dividends Distributable is shown in the equity section of the statement of financial position.
44. Return on ordinary shareholders’ equity is computed by dividing net income by ending ordinary shareholders’ equity.
45. The share capital category on the statement of financial position includes both preference and ordinary shares.
46. The term "reserves" is used for forms of equity other than that contributed by shareholders.
a47.A statement of changes in equity shows the changes in each equity account and in total that have occurred during the year.
a48.A book value per ordinary share is the same amount as the market value per share.
49. Organization costs are capitalized by debiting an intangible asset entitled Organization Costs.
50. The cash proceeds from issuing par value shares may be equal to or greater than, but not less than par value.
51. The cost of a noncash asset acquired in exchange for ordinary shares should be either the fair value of the consideration given up, or the fair value of the consideration received, whichever is more clearly determinable.
52. Under the cost method, Treasury Shares is debited at the price paid to reacquire the shares, and the same amount is credited to Treasury Shares when the shares are sold.
53. A dividend declared out of share capital or share premium is termed a liquidating dividend.
54. Ordinary Share Dividends Distributable is reported as share premium in the equity section.
55. A prior period adjustment is reported as an adjustment of the beginning balance of Retained Earnings.