A Bonus Issue Will Have an Impact On

question 1

Multiple Choice

A bonus issue will have an impact on:

• A) the number of issued preference shares.
• B) the overall debt of the entity.
• C) the overall value of the owners' equity.
• D) the weighted-average number of ordinary shares.

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Definitions:

Debit Part

The left side of an accounting entry, which increases assets and expenses and decreases liabilities and equity.

Journal Entry

A recording of a business transaction in an accounting journal, indicating the financial effects of the transaction.

Posting Reference Column

A column in journals or ledgers used to record page numbers or account numbers, facilitating the tracking of transactions.

Ledger

A comprehensive collection of a company's financial accounts, where all transactions are recorded.