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:

Unrealized Gain

The unrealized gain from an investment that hasn't been converted into cash.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without controlling those policies.

Cash Dividends

Payments made by a corporation to its shareholders out of the company's current or retained earnings, usually in the form of cash.

Net Income

The total profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.