86. Which of the following is
not
a right of an ordinary shareholder?
a.Right to vote and elect the board of directors.
b.Right to receive dividends.
c.Pre-emptive right.
d.Share in assets at liquidation.
87. Which of the following rights of an ordinary shareholder is being eliminated by many companies?
a.Right to vote and elect the board of directors.
b.Right to receive a pro rata share of dividends paid.
c.Pre-emptive right.
d.Share in assets at liquidation.
88. If a company issues par-value ordinary shares, the balance in Share Capital - Ordinary will be the
a.market value of all shares issued.
b.par value of all shares issued.
c.market value of all shares authorized.
d.par value of all shares outstanding.
89. Voltaire Corporation issued 5,000 ordinary shares of CHF5 par value for CHF20 per share. The entry to record this transaction includes a credit to Share Premium–Ordinary for
a.CHF100,000.
b.CHF75,000.
c.CHF25,000.
d.CHF50,000.
90. Voltaire Corporation issued 5,000 ordinary shares of CHF5 par value for CHF20 per share. This transaction will increase
a.Share Premium–Ordinary by CHF100,000.
b.total equity by CHF25,000.
c.Retained Earnings by CHF75,000.
d.Share Capital–Ordinary by CHF25,000.
91. Jahnke Corporation issued 8,000 shares of €2 par value ordinary shares for €11 per share. The journal entry to record the sale will include
a.a debit to Cash for €16,000.
b.a credit to Share Premium–Ordinary for €72,000.
c.a credit to Share Capital–Ordinary for €88,000.
d.a debit to Retained Earnings for €22,000.
92. La Vida Corporation issued 24,000 shares of no-par value ordinary shares for €29.50 per share. Which of the following statements is true?
a.Share Premium–Ordinary account will increase by €276,000.
b.The Cash account will increase by €24,000.
c.Retained Earnings account will increase by €684,000.
d.Share Capital–Ordinary account will increase by €708,000.
93. When shares are issued for legal services, the transaction is recorded by debiting Organization Expense for the
a.stated value of the shares.
b.par value of the shares.
c.market value of the shares.
d.book value of the shares.
94. If Vickers Company issues 5,000 ordinary shares with a $5 par value for $175,000,
a.Share Capital–Ordinary will be credited for $175,000.
b.Share Premium–Ordinary will be credited for $25,000.
c.Share Premium–Ordinary will be credited for $150,000.
d.Cash will be debited for $150,000.
95. If ordinary shares are issued for an amount greater than par value, the excess should be credited to
a.Cash.
b.Retained Earnings.
c.Share Premium–Ordinary.
d.Legal Capital.