Question 1

A public company is a:

Accepted Answer

A) reporting entity. 
B) disclosing entity 
C) Both A and B. 
D) Neither A nor B. 
A) reporting entity. 
B) disclosing entity 
C) Both A and B. 
D) Neither A nor B. C

Question 2

Goodwill on consolidation is classified in the statement of financial position as a/an:

Accepted Answer

A) current asset. 
B) tangible asset. 
C) intangible asset. 
D) non-current liability. 
A) current asset. 
B) tangible asset. 
C) intangible asset. 
D) non-current liability. C

Question 3

Which of the following is included in the statement of changes in equity?

Accepted Answer

A) share issues. 
B) changes to reserves. 
C) changes to retained profits. 
D) all of the above. 
A) share issues. 
B) changes to reserves. 
C) changes to retained profits. 
D) all of the above. D

Question 4

Which of the following is not typically included in the notes to the financial statements?

Accepted Answer

A) all insignificant disclosures. 
B) explanations of measuring bases used. 
C) details of asset subclassifications. 
D) confirmation that accounting standards have been adhered to. 
A) all insignificant disclosures. 
B) explanations of measuring bases used. 
C) details of asset subclassifications. 
D) confirmation that accounting standards have been adhered to.

Question 5

The collapse of several companies earlier this century led to the establishment of a Royal Commission to investigate the contributing issues. Which of the following was not an identified issue?

Accepted Answer

A) Mismanagement. 
B) Unsound management culture. 
C) Ill-conceived decisions. 
D) All of the above were identified as contributing issue 
A) Mismanagement. 
B) Unsound management culture. 
C) Ill-conceived decisions. 
D) All of the above were identified as contributing issue

Question 6

DBC Ltd recently paid $4,000,000 for 60% of JKL Ltd's equity. JKL Ltd had total assets of $6,500,000 and liabilities of $1,300,000. What amount of goodwill on consolidation will DBC Ltd record?

Accepted Answer

A) $2,700,000 
B) $880,000 
C) $1,200,000. 
D) $100,000. 
A) $2,700,000 
B) $880,000 
C) $1,200,000. 
D) $100,000.

Question 7

Each of the following companies collapsed in the early 2000s. Which one is not an Australian company?

Accepted Answer

A) Enron 
B) Ansett 
C) HIH 
D) One.Tel 
A) Enron 
B) Ansett 
C) HIH 
D) One.Tel

Question 8

Which of the following financial statements does not have to be prepared by a publicly listed company?

Accepted Answer

A) Statement of comprehensive income. 
B) Statement of changes in equity. 
C) Statement of cash flows. 
D) All of the above must be prepared. 
A) Statement of comprehensive income. 
B) Statement of changes in equity. 
C) Statement of cash flows. 
D) All of the above must be prepared.

Question 9

Which of the following organisations would be most likely to elect to order their assets on the statement of financial position according to liquidity?

Accepted Answer

A) Retailer. 
B) Credit union. 
C) Manufacturer. 
D) Builder. 
A) Retailer. 
B) Credit union. 
C) Manufacturer. 
D) Builder.

Question 10

Which statement in relation to a company is not correct?

Accepted Answer

A) The directors are required to report to the shareholders by means of financial statements. 
B) The directors are appointed by the shareholders. 
C) If the accounts are required to be audited, the auditors are appointed by the directors. 
D) None of the above, i.e., all are correct statements. 
A) The directors are required to report to the shareholders by means of financial statements. 
B) The directors are appointed by the shareholders. 
C) If the accounts are required to be audited, the auditors are appointed by the directors. 
D) None of the above, i.e., all are correct statements.

Question 11

Which of the following is a responsibility of the directors of a public company?

Accepted Answer

A) to maintain an internal control system within the company. 
B) to ensure financial statements are prepared showing a true and fair view of an organisation's financial situation. 
C) to organise for financial reports to be audited. 
D) All of the above. 
A) to maintain an internal control system within the company. 
B) to ensure financial statements are prepared showing a true and fair view of an organisation's financial situation. 
C) to organise for financial reports to be audited. 
D) All of the above.

Question 12

Which of the following would be regarded as 'other comprehensive income'?

Accepted Answer

A) Foreign exchange gains. 
B) Cash flow hedges. 
C) Revaluation of property. 
D) All of the above. 
A) Foreign exchange gains. 
B) Cash flow hedges. 
C) Revaluation of property. 
D) All of the above.

Question 13

To whom do auditor's report?

Accepted Answer

A) shareholders. 
B) directors. 
C) Both A and B. 
D) Australian Tax Office. 
A) shareholders. 
B) directors. 
C) Both A and B. 
D) Australian Tax Office.

Question 14

Which of the following statements is incorrect? Under ASX Listing Rules, companies must:

Accepted Answer

A) attempt to follow best practice recommendations only if it is convenient. 
B) identify reasons for not following the recommendations. 
C) disclose if a recommendation is not met. 
D) disclose if a disclosure is specifically required under a Rule. 
A) attempt to follow best practice recommendations only if it is convenient. 
B) identify reasons for not following the recommendations. 
C) disclose if a recommendation is not met. 
D) disclose if a disclosure is specifically required under a Rule.

Question 15

If you were asked to loan money to a company that you feared may be getting into financial difficulties, which of these courses of action would provide you with the most protection from default on the loan?

Accepted Answer

A) Rely on the principle of limited liability. 
B) Require a mortgage over a specific asset of the company. 
C) Require the accounts of the company to be audited. 
D) Specify a particular accounting method to be used. 
A) Rely on the principle of limited liability. 
B) Require a mortgage over a specific asset of the company. 
C) Require the accounts of the company to be audited. 
D) Specify a particular accounting method to be used.

Question 16

Which of the following are sources of regulation applicable to publicly listed companies in Australia?

Accepted Answer

A) ASX rules. 
B) Company law. 
C) International accounting standards. 
D) All of the above. 
A) ASX rules. 
B) Company law. 
C) International accounting standards. 
D) All of the above.

Question 17

Which of the following is not included in an audit report?

Accepted Answer

A) An audit opinion on whether or not the financial statements are 'true and fair.' 
B) Identification of the financial reports audited. 
C) A statement on the sustainable strategies of the reporting entity. 
D) A statement that the financial reports were prepared in accordance with accounting standards. 
A) An audit opinion on whether or not the financial statements are 'true and fair.' 
B) Identification of the financial reports audited. 
C) A statement on the sustainable strategies of the reporting entity. 
D) A statement that the financial reports were prepared in accordance with accounting standards.

Question 18

Assume the opening balance of equity (01/07/2017)is $1,500,000. During 2017/18, there was a share issue of $540,000, dividends declared of $280,000 and a profit for the year of $75,000, What is the equity balance on the 30/06/2018?

Accepted Answer

A) $2,650,000 
B) $2,370,000 
C) $1,835,000 
D) Not enough data to calculate the closing balance. 
A) $2,650,000 
B) $2,370,000 
C) $1,835,000 
D) Not enough data to calculate the closing balance.

Question 19

Three key groups associated with companies are directors, shareholders and auditors.
a. Explain the relationship between these three groups.
b. Define a reporting entity and a disclosing entity.

Accepted Answer

a. The directors are appointed by the sh

Question 20

What is the system by which businesses are controlled and directed?

Accepted Answer

A) auditing. 
B) general management. 
C) corporate governance. 
D) business directing. 
A) auditing. 
B) general management. 
C) corporate governance. 
D) business directing.

A public company is a:

Goodwill on consolidation is classified in the statement of financial position as a/an:

Which of the following is included in the statement of changes in equity?

Which of the following is not typically included in the notes to the financial statements?

The collapse of several companies earlier this century led to the establishment of a Royal Commission to investigate the contributing issues. Which of the following was not an identified issue?

DBC Ltd recently paid $4,000,000 for 60% of JKL Ltd's equity. JKL Ltd had total assets of $6,500,000 and liabilities of $1,300,000. What amount of goodwill on consolidation will DBC Ltd record?

Each of the following companies collapsed in the early 2000s. Which one is not an Australian company?

Which of the following financial statements does not have to be prepared by a publicly listed company?

Which of the following organisations would be most likely to elect to order their assets on the statement of financial position according to liquidity?

Which statement in relation to a company is not correct?

Which of the following is a responsibility of the directors of a public company?

Which of the following would be regarded as 'other comprehensive income'?

To whom do auditor's report?

Which of the following statements is incorrect? Under ASX Listing Rules, companies must:

If you were asked to loan money to a company that you feared may be getting into financial difficulties, which of these courses of action would provide you with the most protection from default on the loan?

Which of the following are sources of regulation applicable to publicly listed companies in Australia?

Which of the following is not included in an audit report?

Assume the opening balance of equity (01/07/2017)is $1,500,000. During 2017/18, there was a share issue of $540,000, dividends declared of $280,000 and a profit for the year of $75,000, What is the equity balance on the 30/06/2018?

Three key groups associated with companies are directors, shareholders and auditors. a. Explain the relationship between these three groups. b. Define a reporting entity and a disclosing entity.

What is the system by which businesses are controlled and directed?

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Cost-Volume-Profit Analysis and Relevant Costing

Full Costing

Budgeting

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters

Exam 5: Regulatory Framework for Companies

A public company is a:

Goodwill on consolidation is classified in the statement of financial position as a/an:

Which of the following is included in the statement of changes in equity?

Which of the following is not typically included in the notes to the financial statements?

The collapse of several companies earlier this century led to the establishment of a Royal Commission to investigate the contributing issues. Which of the following was not an identified issue?

DBC Ltd recently paid $4,000,000 for 60% of JKL Ltd's equity. JKL Ltd had total assets of $6,500,000 and liabilities of $1,300,000. What amount of goodwill on consolidation will DBC Ltd record?

Each of the following companies collapsed in the early 2000s. Which one is not an Australian company?

Which of the following financial statements does not have to be prepared by a publicly listed company?

Which of the following organisations would be most likely to elect to order their assets on the statement of financial position according to liquidity?

Which statement in relation to a company is not correct?

Which of the following is a responsibility of the directors of a public company?

Which of the following would be regarded as 'other comprehensive income'?

To whom do auditor's report?

Which of the following statements is incorrect? Under ASX Listing Rules, companies must:

If you were asked to loan money to a company that you feared may be getting into financial difficulties, which of these courses of action would provide you with the most protection from default on the loan?

Which of the following are sources of regulation applicable to publicly listed companies in Australia?

Which of the following is not included in an audit report?

Assume the opening balance of equity (01/07/2017)is $1,500,000. During 2017/18, there was a share issue of $540,000, dividends declared of $280,000 and a profit for the year of $75,000, What is the equity balance on the 30/06/2018?

Three key groups associated with companies are directors, shareholders and auditors. a. Explain the relationship between these three groups. b. Define a reporting entity and a disclosing entity.

What is the system by which businesses are controlled and directed?

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Cost-Volume-Profit Analysis and Relevant Costing

Full Costing

Budgeting

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters