Question 1

The two main types of companies permitted to be registered under the Corporations Act 2001 are a:

Accepted Answer

A)  private company and a proprietary company. 
B)  public company and a trade union. 
C)  proprietary company, and a public company. 
D)  proprietary company and a partnership. 
A)  private company and a proprietary company. 
B)  public company and a trade union. 
C)  proprietary company, and a public company. 
D)  proprietary company and a partnership.

Question 2

Members of a company are allowed to sell their shares at any time, provided they obtain permission from the other members.

Accepted Answer

A) True 
 B)False

Question 3

The replaceable rules built into the Corporations Act deal with which of the following?

Accepted Answer

A)  Appointment, powers, remuneration and termination of directors. 
B)  Meetings between the external auditors and the company's audit committee. 
C)  Remuneration of the external auditors. 
D)  Annual dividend payments to members. 
A)  Appointment, powers, remuneration and termination of directors. 
B)  Meetings between the external auditors and the company's audit committee. 
C)  Remuneration of the external auditors. 
D)  Annual dividend payments to members.

Question 4

Compared to IFRS standards, Australian accounting standards initially required:

Accepted Answer

A)  less disclosure in notes to the financial statements. 
B)  identical disclosures in notes to the financial statements. 
C)  more information disclosed in the notes to the financial statements. 
D)  different disclosures in the notes to the financial statements. 
A)  less disclosure in notes to the financial statements. 
B)  identical disclosures in notes to the financial statements. 
C)  more information disclosed in the notes to the financial statements. 
D)  different disclosures in the notes to the financial statements.

Question 5

The Australian Securities and Investments Commission (ASIC) is responsible for monitoring and promoting market integrity and consumer protection in relation to the Australian financial system.

Accepted Answer

A) True 
 B)False

Question 6

In Australia, the Corporations Act 2001 is administered by the:

Accepted Answer

A)  Australian Securities Exchange. 
B)  Australian Accounting Research Foundation. 
C)  Australian Securities and Investments Commission. 
D)  Securities and Exchange Commission. 
A)  Australian Securities Exchange. 
B)  Australian Accounting Research Foundation. 
C)  Australian Securities and Investments Commission. 
D)  Securities and Exchange Commission.

Question 7

Accounting standards approved by the Accounting Standards Review Board (ASRB) had:

Accepted Answer

A)  no legal backing under the Companies Act, and their application was optional. 
B)  no legal backing under the Companies Act, although almost all companies followed their guidance. 
C)  the force of law under the Companies Act, unless the companies could show that, by complying with any particular standard, the company's financial reports would not show a 'true and fair view'. 
D)  the force of law under the Companies Act, and their application was mandatory at all times. 
A)  no legal backing under the Companies Act, and their application was optional. 
B)  no legal backing under the Companies Act, although almost all companies followed their guidance. 
C)  the force of law under the Companies Act, unless the companies could show that, by complying with any particular standard, the company's financial reports would not show a 'true and fair view'. 
D)  the force of law under the Companies Act, and their application was mandatory at all times.

Question 8

The aim of the proposals in the Corporate Law Economic Reform Program (CLERP) first discussion paper was to provide a standard-setting process which would be beneficial for Australian business operating in a global environment and which would be economically efficient.

Accepted Answer

A) True 
 B)False

Question 9

Prior to 1988 the role of the Accounting Standards Review Board (ASRB) was to formulate and issue accounting standards.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not specifically excluded from the definition of a debenture under s. 9 of the Corporations Act 2001?

Accepted Answer

A)  Bank overdrafts in the ordinary course of business. 
B)  Unsecured notes. 
C)  Money orders. 
D)  Cheques. 
A)  Bank overdrafts in the ordinary course of business. 
B)  Unsecured notes. 
C)  Money orders. 
D)  Cheques.

The two main types of companies permitted to be registered under the Corporations Act 2001 are a:

Members of a company are allowed to sell their shares at any time, provided they obtain permission from the other members.

The replaceable rules built into the Corporations Act deal with which of the following?

Compared to IFRS standards, Australian accounting standards initially required:

The Australian Securities and Investments Commission (ASIC) is responsible for monitoring and promoting market integrity and consumer protection in relation to the Australian financial system.

In Australia, the Corporations Act 2001 is administered by the:

Accounting standards approved by the Accounting Standards Review Board (ASRB) had:

The aim of the proposals in the Corporate Law Economic Reform Program (CLERP) first discussion paper was to provide a standard-setting process which would be beneficial for Australian business operating in a global environment and which would be economically efficient.

Prior to 1988 the role of the Accounting Standards Review Board (ASRB) was to formulate and issue accounting standards.

Which of the following is not specifically excluded from the definition of a debenture under s. 9 of the Corporations Act 2001?

Financing Company Operations

Business Combinations

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Financial Statements Into a Presentation Currency

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Company Income Tax

Property, Plant Equipment

Filters

Exam 1: Nature and Regulation of Companies

The two main types of companies permitted to be registered under the Corporations Act 2001 are a:

Members of a company are allowed to sell their shares at any time, provided they obtain permission from the other members.

The replaceable rules built into the Corporations Act deal with which of the following?

Compared to IFRS standards, Australian accounting standards initially required:

The Australian Securities and Investments Commission (ASIC) is responsible for monitoring and promoting market integrity and consumer protection in relation to the Australian financial system.

In Australia, the Corporations Act 2001 is administered by the:

Accounting standards approved by the Accounting Standards Review Board (ASRB) had:

The aim of the proposals in the Corporate Law Economic Reform Program (CLERP) first discussion paper was to provide a standard-setting process which would be beneficial for Australian business operating in a global environment and which would be economically efficient.

Prior to 1988 the role of the Accounting Standards Review Board (ASRB) was to formulate and issue accounting standards.

Which of the following is not specifically excluded from the definition of a debenture under s. 9 of the Corporations Act 2001?

Financing Company Operations

Business Combinations

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Financial Statements Into a Presentation Currency

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Company Income Tax

Property, Plant Equipment

Filters