3. Financial Reporting for Entities
Share Capital — Quiz
Test your understanding of share capital with 5 practice questions.
Practice Questions
Question 1
A company issues 250,000 ordinary shares at $3.00 each. The nominal value of each share is $1.50. What is the total amount credited to the Share Capital account?
Question 2
A company with 900,000 ordinary shares of $1.00 each announces a 1-for-3 bonus issue. How many new shares will be issued as part of the bonus issue?
Question 3
A company issues 400,000 preference shares at $5.00 each. The nominal value of each preference share is $4.00. What is the total amount credited to the Share Premium account?
Question 4
A company has 1,200,000 ordinary shares of 0.50 each. It makes a 3-for-10 rights issue at $0.80 per share. How much cash will the company receive if the rights issue is fully subscribed?
Question 5
A company issues 300,000 ordinary shares at $2.50 each. The nominal value of each share is $1.00. What is the total amount credited to the Share Premium account?