Question 1

The balance in the retained earnings account is affected by the transfer to that account of:

Accepted Answer

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

Question 2

For-profit companies may be

Accepted Answer

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

Question 3

Valdez Limited issued 10 000 share options to subscribe for ordinary shares. The exercise price on the options was $3 per share. If all options were exercised on due date the following journal entry would be recorded:
A) 
B) 
C) 
D)

Accepted Answer

The answer of Valdez Limited issued 10 000 share options...

Question 4

Which of the following is not a reason that companies may undertake a share buy-back?

Accepted Answer

A)  as a defence against a hostile takeover 
B)  to manage the capital structure 
C)  to increase the worth per share of the remaining shares 
D)  as a way to efficiently manage surplus funds 
A)  as a defence against a hostile takeover 
B)  to manage the capital structure 
C)  to increase the worth per share of the remaining shares 
D)  as a way to efficiently manage surplus funds

Question 5

Gains or losses that arise as a result of translating foreign currency denominated operations into the reporting currency are recognised in income:

Accepted Answer

A)  in the reporting period in which they arise; 
B)  only when the interest in the foreign operation is sold; 
C)  only if they are material items; 
D)  only when they are settled in cash. 
A)  in the reporting period in which they arise; 
B)  only when the interest in the foreign operation is sold; 
C)  only if they are material items; 
D)  only when they are settled in cash.

Question 6

Gains and losses on available-for-sale financial assets are recognised directly in equity until the financial asset is derecognised. At this time the cumulative gain or loss previously recognised is:

Accepted Answer

A)  recognised in profit and loss; 
B)  transferred to a revaluation reserve account in equity; 
C)  charged against a provision for gains and losses account; 
D)  set-off against the relevant financial asset. 
A)  recognised in profit and loss; 
B)  transferred to a revaluation reserve account in equity; 
C)  charged against a provision for gains and losses account; 
D)  set-off against the relevant financial asset.

Question 7

The bonus issue of shares has the following impact on the equity of a company;

Accepted Answer

A)  total equity increases; 
B)  total equity decreases; 
C)  one equity account increases and another equity account decreases by an equal amount; 
D)  only the amount of issued share capital changes. 
A)  total equity increases; 
B)  total equity decreases; 
C)  one equity account increases and another equity account decreases by an equal amount; 
D)  only the amount of issued share capital changes.

Question 8

IAS 1 Presentation of Financial Statements requires the following items to appear on the face of the Statement of Changes in Equity

Accepted Answer

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

The balance in the retained earnings account is affected by the transfer to that account of:

For-profit companies may be

Valdez Limited issued 10 000 share options to subscribe for ordinary shares. The exercise price on the options was $3 per share. If all options were exercised on due date the following journal entry would be recorded: A) B) C) D)

Which of the following is not a reason that companies may undertake a share buy-back?

Gains or losses that arise as a result of translating foreign currency denominated operations into the reporting currency are recognised in income:

Gains and losses on available-for-sale financial assets are recognised directly in equity until the financial asset is derecognised. At this time the cumulative gain or loss previously recognised is:

The bonus issue of shares has the following impact on the equity of a company;

IAS 1 Presentation of Financial Statements requires the following items to appear on the face of the Statement of Changes in Equity

The Conceptual Framework of the Iasb

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Inventories

Employee Benefits

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Translation of the Financial Statements of Foreign Entities

Associates and Joint Ventures

Joint Arrangements

Filters

Exam 2: Shareholders Equity: Share Capital and Reserves

The balance in the retained earnings account is affected by the transfer to that account of:

For-profit companies may be

Valdez Limited issued 10 000 share options to subscribe for ordinary shares. The exercise price on the options was $3 per share. If all options were exercised on due date the following journal entry would be recorded: A) B) C) D)

Which of the following is not a reason that companies may undertake a share buy-back?

Gains or losses that arise as a result of translating foreign currency denominated operations into the reporting currency are recognised in income:

Gains and losses on available-for-sale financial assets are recognised directly in equity until the financial asset is derecognised. At this time the cumulative gain or loss previously recognised is:

The bonus issue of shares has the following impact on the equity of a company;

IAS 1 Presentation of Financial Statements requires the following items to appear on the face of the Statement of Changes in Equity

The Conceptual Framework of the Iasb

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Inventories

Employee Benefits

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Translation of the Financial Statements of Foreign Entities

Associates and Joint Ventures

Joint Arrangements

Filters