Question 1

If a company has created a forfeited shares reserve,this means that:

Accepted Answer

A)  The company is not a member of the Australian Stock Exchange and its constitution does not require it to refund amounts already paid by defaulting investors. 
B)  The company is expecting that the amounts unpaid will be collected in the next period. 
C)  The company is a member of the Australian Stock Exchange and is required to refund amounts already paid by defaulting investors. 
D)  The company is holding the amounts already paid by defaulting investors in trust in order to repay them on the request of the investor. 
A)  The company is not a member of the Australian Stock Exchange and its constitution does not require it to refund amounts already paid by defaulting investors. 
B)  The company is expecting that the amounts unpaid will be collected in the next period. 
C)  The company is a member of the Australian Stock Exchange and is required to refund amounts already paid by defaulting investors. 
D)  The company is holding the amounts already paid by defaulting investors in trust in order to repay them on the request of the investor.

Question 2

A forfeited shares account is:

Accepted Answer

A)  a revenue account. 
B)  an expense account. 
C)  a liability account. 
D)  an asset account. 
A)  a revenue account. 
B)  an expense account. 
C)  a liability account. 
D)  an asset account.

Question 3

Normal features of ordinary shares include:

Accepted Answer

A)  They entitle the holder to receive his/her proportion of any ordinary dividends declared. 
B)  They ensure the holder has priority over unsecured creditors in the case of the company going into liquidation. 
C)  They confer voting rights. 
D)  They entitle the holder to receive his/her proportion of any ordinary dividends declared and they confer voting rights. 
A)  They entitle the holder to receive his/her proportion of any ordinary dividends declared. 
B)  They ensure the holder has priority over unsecured creditors in the case of the company going into liquidation. 
C)  They confer voting rights. 
D)  They entitle the holder to receive his/her proportion of any ordinary dividends declared and they confer voting rights.

Question 4

The total market capitalisation of a company after a bonus issue is likely to:

Accepted Answer

A)  be lower than it was before the bonus issue. 
B)  be greater than it was before the bonus issue. 
C)  be less than it was before the bonus issue. 
D)  There will be no change. 
A)  be lower than it was before the bonus issue. 
B)  be greater than it was before the bonus issue. 
C)  be less than it was before the bonus issue. 
D)  There will be no change.

Question 5

As a consequence of recent changes to the Corporations Act 2001 (s.254C),shares of a company are no longer considered to be issued at a premium or a discount.

Accepted Answer

A) True 
 B)False

If a company has created a forfeited shares reserve,this means that:

A forfeited shares account is:

Normal features of ordinary shares include:

The total market capitalisation of a company after a bonus issue is likely to:

As a consequence of recent changes to the Corporations Act 2001 (s.254C),shares of a company are no longer considered to be issued at a premium or a discount.

An Overview of the Australian External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Accounting

An Overview of Accounting for Assets

Depreciation of Property, plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

Accounting for Heritage Assets and Biological Assets

An Overview of Accounting for Liabilities

Accounting for Leases

Accounting for Employee Benefits

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Share-Based Payments

Accounting for Income Taxes

The Statement of Cash Flows

Accounting for the Extractive Industries

Accounting for General Insurance Contracts

Accounting for Superannuation Plans

Events Occurring After the End of the Reporting Period

Segment Reporting

Related Party Disclosures

Earnings Per Share

Accounting for Group Structures

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues IV: Accounting for Changes in the Degree of Ownership of a Subsidiary

Accounting for Equity Investments,including Investments in Associates and Joint Arrangements

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

Filters

Exam 13: Share Capital and Reserves

If a company has created a forfeited shares reserve,this means that:

A forfeited shares account is:

Normal features of ordinary shares include:

The total market capitalisation of a company after a bonus issue is likely to:

As a consequence of recent changes to the Corporations Act 2001 (s.254C),shares of a company are no longer considered to be issued at a premium or a discount.

An Overview of the Australian External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Accounting

An Overview of Accounting for Assets

Depreciation of Property, plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

Accounting for Heritage Assets and Biological Assets

An Overview of Accounting for Liabilities

Accounting for Leases

Accounting for Employee Benefits

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Share-Based Payments

Accounting for Income Taxes

The Statement of Cash Flows

Accounting for the Extractive Industries

Accounting for General Insurance Contracts

Accounting for Superannuation Plans

Events Occurring After the End of the Reporting Period

Segment Reporting

Related Party Disclosures

Earnings Per Share

Accounting for Group Structures

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues IV: Accounting for Changes in the Degree of Ownership of a Subsidiary

Accounting for Equity Investments,including Investments in Associates and Joint Arrangements

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

Filters