Question 1

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

Accepted Answer

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

Question 2

The share capital of a company may consist of:

Accepted Answer

A) ordinary shares either fully paid or partly paid issued by the company 
B) mortgages issued by the company 
C) secured and unsecured notes issued by the company 
D) debentures issued by the company. 
A) ordinary shares either fully paid or partly paid issued by the company 
B) mortgages issued by the company 
C) secured and unsecured notes issued by the company 
D) debentures issued by the company. A

Question 3

The main functions of the Financial Reporting Council include:
I.overseeing the process for the setting of accounting standards of the AASB.
II.determining the AASB's broad strategic direction.
III.monitoring and reviewing the level of funding for the AASB.
IV.directing the AASB in relation to the development or making of a particular standard.
V.the power to veto a standard recommended by the AASB.

Accepted Answer

A) I,II,III and V only 
B) I,II,and III only 
C) I,II,IV and V only 
D) II,III,IV and V only. 
A) I,II,III and V only 
B) I,II,and III only 
C) I,II,IV and V only 
D) II,III,IV and V only. B

Question 4

Explain the difference between replaceable rules and a constitution.

Accepted Answer

Replaceable rules consist of a standard

Question 5

Compared to IFRS standards,Australian accounting standards require:

Accepted Answer

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

Question 6

AASB 1048 Interpretation and Application of Standards contains:

Accepted Answer

A) the IFRS interpretations approved by the AASB. 
B) the UIG interpretations approved by the IASB. 
C) the IFRS interpretations approved by the IASB. 
D) the UIG interpretations approved by the AASB. 
A) the IFRS interpretations approved by the AASB. 
B) the UIG interpretations approved by the IASB. 
C) the IFRS interpretations approved by the IASB. 
D) the UIG interpretations approved by the AASB.

Question 7

Which of the following was NOT one of the objectives of the CLERP policy initiatives?

Accepted Answer

A) To make access to capital easier for small business 
B) To provide greater protection for directors 
C) To improve takeover legislation 
D) To facilitate the more widespread use of electronic commerce 
A) To make access to capital easier for small business 
B) To provide greater protection for directors 
C) To improve takeover legislation 
D) To facilitate the more widespread use of electronic commerce

Question 8

In July 2002 the Financial Reporting Council (FRC)issued a bulletin requiring what type of entities to adopt standards issued by the IASB from 1 January 2005.

Accepted Answer

A) all entities 
B) reporting entities 
C) for-profit entities 
D) listed entities 
A) all entities 
B) reporting entities 
C) for-profit entities 
D) listed entities

Question 9

The role of the Australian Securities and Investments Commission is to:
I.Enforce and administer the Corporations Act.
II.Inform the public about Australian companies,financial markets and financial professionals who deal and advise in financial instruments.
III.Issue accounting standards.
IV.Improve the performance of the financial system.

Accepted Answer

A) I,II,III and IV 
B) I,III and IV only 
C) I,II and IV only 
D) II,and III only. 
A) I,II,III and IV 
B) I,III and IV only 
C) I,II and IV only 
D) II,and III only.

Question 10

The existence of a limited liability company means the:
I.company's members are liable for only a limited amount of business debts.
II.company has a legal existence distinct from its owners.
III.company may raise large amounts of funds by issuing shares.

Accepted Answer

A) I only 
B) I and II only 
C) II and III only 
D) I,II and III. 
A) I only 
B) I and II only 
C) II and III only 
D) I,II and III.

Question 11

According to the ASIC Act (2001)a key way in which accounting standards should facilitate the Australian economy is by

Accepted Answer

A) having regard to the interests of Australian corporations that propose to raise capital in major international financial markets. 
B) ensuring that all standards are relevant and reliable. 
C) reducing the cost of capital 
D) ensuring harmonization with IFRSs 
A) having regard to the interests of Australian corporations that propose to raise capital in major international financial markets. 
B) ensuring that all standards are relevant and reliable. 
C) reducing the cost of capital 
D) ensuring harmonization with IFRSs

Question 12

In terms of the numbering of AASB accounting standards:

Accepted Answer

A) AASB 1-99 are equivalent to the IFRSs issued by the IASB. 
B) AASB 101-199 are equivalent to the IFRSs issued by the IASB. 
C) AASB 1-99 address domestic issues such as director and executive disclosures and concise financial reports. 
D) AASB 101-199 address domestic issues such as director and executive disclosures and concise financial reports. 
A) AASB 1-99 are equivalent to the IFRSs issued by the IASB. 
B) AASB 101-199 are equivalent to the IFRSs issued by the IASB. 
C) AASB 1-99 address domestic issues such as director and executive disclosures and concise financial reports. 
D) AASB 101-199 address domestic issues such as director and executive disclosures and concise financial reports.

Question 13

Explain the numbering system used by the AASB for accounting standards.

Accepted Answer

AASB 1-99 These are the Australian equiv

Question 14

According to s.224 (a)of the ASIC Act (2001),accounting standards should result in financial information,which has which of the following characteristics?
I allows user to make decisions about allocating scarce resources
II assists directors in discharging their obligations in relation to financial reporting
III is able to be prepared on a timely basis
IV is readily understandable
V facilitates comparability
VI is relevant and reliable

Accepted Answer

A) I,IV and VI only 
B) I,III,IV and VI 
C) I,II,IV,V and VI 
D) all of the above 
A) I,IV and VI only 
B) I,III,IV and VI 
C) I,II,IV,V and VI 
D) all of the above

Question 15

Which of the following statements is NOT correct?

Accepted Answer

A) AASB 1053 Application of Tiers of Australian Accounting Standards requires 'Tier 2' entities to apply reduced disclosure requirements. 
B) The IASBs Conceptual Framework identifies capital providers as a primary user group of general purpose financial reports. 
C) All general purpose financial reports are prepared in accordance with accounting standards. 
D) SAC 1 Definition of the Reporting Entity defines a general purpose financial report as "a report intended to meet the information needs of users who are unable to command the preparation of reports tailored to satisfy their information needs". 
A) AASB 1053 Application of Tiers of Australian Accounting Standards requires 'Tier 2' entities to apply reduced disclosure requirements. 
B) The IASBs Conceptual Framework identifies capital providers as a primary user group of general purpose financial reports. 
C) All general purpose financial reports are prepared in accordance with accounting standards. 
D) SAC 1 Definition of the Reporting Entity defines a general purpose financial report as "a report intended to meet the information needs of users who are unable to command the preparation of reports tailored to satisfy their information needs".

Question 16

The functions of the Australian Accounting Standards Board include:
I.Development of a conceptual framework for the purpose of evaluating proposed accounting standards.
II.Making accounting standards for the purpose of the Corporations Act.
III.Formulating accounting standards for non-companies,the public sector and the not-for-profit sector.

Accepted Answer

A) I only 
B) II and III only 
C) I and III only 
D) I,II and III. 
A) I only 
B) II and III only 
C) I and III only 
D) I,II and III.

Question 17

Explain how a company comes into existence and identify five powers that a company has.

Accepted Answer

A company is a form of business organisa

Question 18

The certificate of registration issued by the Australian Securities and Investments Commission is valid:

Accepted Answer

A) for 12 months only and must be renewed annually 
B) for a maximum period of 5 years 
C) for 15 years 
D) until the company is deregistered. 
A) for 12 months only and must be renewed annually 
B) for a maximum period of 5 years 
C) for 15 years 
D) until the company is deregistered.

Question 19

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

Accepted Answer

A) Had no legal backing under the Companies Act,and their application was optional. 
B) Had no legal backing under the Companies Act,although almost all companies followed their guidance. 
C) Had legal backing under the Companies Act,although companies could depart from the accounting standards if it was maintained that application did not result in the financial reports showing a 'true & fair view' 
D) Had legal backing under the Companies Act,and their application was mandatory at all times. 
A) Had no legal backing under the Companies Act,and their application was optional. 
B) Had no legal backing under the Companies Act,although almost all companies followed their guidance. 
C) Had legal backing under the Companies Act,although companies could depart from the accounting standards if it was maintained that application did not result in the financial reports showing a 'true & fair view' 
D) Had legal backing under the Companies Act,and their application was mandatory at all times.

Question 20

Replaceable rules deal with:
I.The appointment,powers and remuneration of directors.
II.Director's and member's meetings.
III.Share transfers.
IV.Inspection of the company's books by members.

Accepted Answer

A) I,II,III and IV 
B) II and III only 
C) I and IV only 
D) I,II and III only. 
A) I,II,III and IV 
B) II and III only 
C) I and IV only 
D) I,II and III only.

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

The share capital of a company may consist of:

Explain the difference between replaceable rules and a constitution.

Compared to IFRS standards,Australian accounting standards require:

AASB 1048 Interpretation and Application of Standards contains:

Which of the following was NOT one of the objectives of the CLERP policy initiatives?

In July 2002 the Financial Reporting Council (FRC)issued a bulletin requiring what type of entities to adopt standards issued by the IASB from 1 January 2005.

The existence of a limited liability company means the: I.company's members are liable for only a limited amount of business debts. II.company has a legal existence distinct from its owners. III.company may raise large amounts of funds by issuing shares.

According to the ASIC Act (2001)a key way in which accounting standards should facilitate the Australian economy is by

In terms of the numbering of AASB accounting standards:

Explain the numbering system used by the AASB for accounting standards.

Which of the following statements is NOT correct?

Explain how a company comes into existence and identify five powers that a company has.

The certificate of registration issued by the Australian Securities and Investments Commission is valid:

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

Replaceable rules deal with: I.The appointment,powers and remuneration of directors. II.Director's and member's meetings. III.Share transfers. IV.Inspection of the company's books by members.

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Accounting for Investments in Associates

Insolvency and Liquidation

Filters

Exam 1: Nature and Regulation of Companies

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

The share capital of a company may consist of:

Explain the difference between replaceable rules and a constitution.

Compared to IFRS standards,Australian accounting standards require:

AASB 1048 Interpretation and Application of Standards contains:

Which of the following was NOT one of the objectives of the CLERP policy initiatives?

In July 2002 the Financial Reporting Council (FRC)issued a bulletin requiring what type of entities to adopt standards issued by the IASB from 1 January 2005.

The existence of a limited liability company means the: I.company's members are liable for only a limited amount of business debts. II.company has a legal existence distinct from its owners. III.company may raise large amounts of funds by issuing shares.

According to the ASIC Act (2001)a key way in which accounting standards should facilitate the Australian economy is by

In terms of the numbering of AASB accounting standards:

Explain the numbering system used by the AASB for accounting standards.

Which of the following statements is NOT correct?

Explain how a company comes into existence and identify five powers that a company has.

The certificate of registration issued by the Australian Securities and Investments Commission is valid:

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

Replaceable rules deal with: I.The appointment,powers and remuneration of directors. II.Director's and member's meetings. III.Share transfers. IV.Inspection of the company's books by members.

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Accounting for Investments in Associates

Insolvency and Liquidation

Filters