Who are the owners of a limited liability company

Who are the owners of a limited liability company - 3 It...

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Who are the owners of a limited liability company A: the shareholders Which of the following does not form part of a company’s equity A; preference shares 3- Hopeful ltd had issued 500,000 shared at a nominal value of 25p each when it commenced business. After 2 years of profitable trading it issued a further 250,000 shares at market prive of 75p per share.Which of the following would be reported in the balance sheet after the second chare issued. A: Share capital 187,500, share premium 125,000 4- thre are proposal to base distributable profit of a public company on a solvency declaration by its director instead of on realisation principle A; true 5- the characteristics of a normal sale are that the vendor relinquishes physical control of the asset and is no longer affected by changes in asset ( the risk are transferred) A: true 6- Needly ltd sold it accounts receivable to advance plc at the end of its financial year at a discount of
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Unformatted text preview: 3%. It any of the accounts failed to pay in full Advance plc agreed not to require Needy Ltd to repay this amount. A; A genuise sale with the cash received shown as reducing the accounts receivable balance 7- if the likelyhood of contingent liability is possible then the only disclosure required is an estimate of its financial effect and the possibility of any reimbursement A; False 8- Borrow LTD issed 1000 £100 5% convertible debenture at part on 1 january 2000. The debentures can either be converted into 50 ordinary shares per £100 of debentures oe be redeemed at par at any date from 1 january 2005.Interest is paid annually in arrears on 31 December. the interest rate on similar debentures without the conversion option is 7% The value of the equity proceed is A; 8200 9-...
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This note was uploaded on 02/19/2011 for the course ECONOMICS mtp taught by Professor Google during the Spring '10 term at City UK.

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