Question 1

According to the Corporations Act,dividends may:

Accepted Answer

A) only be paid to shareholders once a year. 
B) only be paid out of the current year's profits of a company. 
C) be declared and paid to shareholders irrespective of whether a company has accumulated losses. 
D) be paid if the company has an excess of assets over liabilities. 
A) only be paid to shareholders once a year. 
B) only be paid out of the current year's profits of a company. 
C) be declared and paid to shareholders irrespective of whether a company has accumulated losses. 
D) be paid if the company has an excess of assets over liabilities.

Question 2

Under the Conceptual Framework,the settlement of a liability can be made in a number of ways,including by conversion of the obligation into equity.

Accepted Answer

A) True 
 B)False

Question 3

Information has the quality of reliability when it:

Accepted Answer

A) cannot be relied on by financial statement errors. 
B) is relevant to decisions being made by users. 
C) contains many material errors. 
D) is free from material error. 
A) cannot be relied on by financial statement errors. 
B) is relevant to decisions being made by users. 
C) contains many material errors. 
D) is free from material error.

Question 4

An entity's operating cycle cannot be greater than 12 months.

Accepted Answer

A) True 
 B)False

Question 5

When changing an accounting policy,AASB 108 requires which of the following to be applied retrospectively?

Accepted Answer

A) A voluntary change to improve the relevance of information presented. 
B) A change due to the adoption of a new accounting standard. 
C) A change due to the adoption of a new interpretation. 
D) All of the options are correct. 
A) A voluntary change to improve the relevance of information presented. 
B) A change due to the adoption of a new accounting standard. 
C) A change due to the adoption of a new interpretation. 
D) All of the options are correct.

Question 6

The statement of changes in equity shows the movement between the beginning and ending balance for the period for each equity account.

Accepted Answer

A) True 
 B)False

Question 7

In relation to the measurement of an asset,the amount of consideration given to acquire the asset at its acquisition date is known as its:

Accepted Answer

A) historical cost. 
B) current cost. 
C) realisable value. 
D) present value. 
A) historical cost. 
B) current cost. 
C) realisable value. 
D) present value.

Question 8

A company incurs significant costs in relation to a speculative mining project that intends to turn rocks into gold.In accordance with the AASB's Conceptual Framework,the costs of this project would be an:

Accepted Answer

A) expense because there is little probability that future economic benefits will eventuate. 
B) expense because the recognition criteria for an asset is not satisfied. 
C) asset because the definition and recognition criteria for assets are satisfied. 
D) asset because the company will control the future economic benefits. 
A) expense because there is little probability that future economic benefits will eventuate. 
B) expense because the recognition criteria for an asset is not satisfied. 
C) asset because the definition and recognition criteria for assets are satisfied. 
D) asset because the company will control the future economic benefits.

Question 9

Income arises because of changes in:

Accepted Answer

A) revenues and expenses. 
B) assets and liabilities. 
C) assets and expenses. 
D) equity and liabilities. 
A) revenues and expenses. 
B) assets and liabilities. 
C) assets and expenses. 
D) equity and liabilities.

According to the Corporations Act,dividends may:

Under the Conceptual Framework,the settlement of a liability can be made in a number of ways,including by conversion of the obligation into equity.

Information has the quality of reliability when it:

An entity's operating cycle cannot be greater than 12 months.

When changing an accounting policy,AASB 108 requires which of the following to be applied retrospectively?

The statement of changes in equity shows the movement between the beginning and ending balance for the period for each equity account.

In relation to the measurement of an asset,the amount of consideration given to acquire the asset at its acquisition date is known as its:

A company incurs significant costs in relation to a speculative mining project that intends to turn rocks into gold.In accordance with the AASB's Conceptual Framework,the costs of this project would be an:

Income arises because of changes in:

Nature and Regulation of Companies

Financing Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Financial Instruments

Foreign Currency Transactions and Forward Exchange Contracts

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

Disclosure: 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

Investments in Joint Arrangements

Insolvency and Liquidation

Filters

Exam 3: Company Operations

According to the Corporations Act,dividends may:

Under the Conceptual Framework,the settlement of a liability can be made in a number of ways,including by conversion of the obligation into equity.

Information has the quality of reliability when it:

An entity's operating cycle cannot be greater than 12 months.

When changing an accounting policy,AASB 108 requires which of the following to be applied retrospectively?

The statement of changes in equity shows the movement between the beginning and ending balance for the period for each equity account.

In relation to the measurement of an asset,the amount of consideration given to acquire the asset at its acquisition date is known as its:

A company incurs significant costs in relation to a speculative mining project that intends to turn rocks into gold.In accordance with the AASB's Conceptual Framework,the costs of this project would be an:

Income arises because of changes in:

Nature and Regulation of Companies

Financing Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Financial Instruments

Foreign Currency Transactions and Forward Exchange Contracts

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

Disclosure: 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

Investments in Joint Arrangements

Insolvency and Liquidation

Filters