The Issuer of an Ordinary Share Dividend to Ordinary Shareholders

question 40

Multiple Choice

The issuer of an ordinary share dividend to ordinary shareholders should transfer from retained earnings to contributed capital an amount equal to the

• A)fair value of the shares issued.
• B)book value of the shares issued.
• C)minimum legal requirements.
• D)par or stated value of the shares issued.

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Definitions:

Hormone

A chemical substance produced in the body that controls and regulates the activity of certain cells or organs.

PYY

A hormone, short for Peptide YY, produced in the gut in response to eating and is associated with reducing appetite and inhibiting food intake.

Leptin

A hormone produced by fat cells that is involved in the regulation of appetite and metabolism, often affecting feelings of satiety and hunger.

Stomach Contractions

Involuntary movements of the stomach muscles that mix and propel contents through the gastrointestinal tract.