Question 1

When a company issues new shares the impact on the accounting equation is to increase:

Accepted Answer

A)  equity and decrease assets. 
B)  equity and increase liabilities. 
C)  liabilities and increase assets. 
D)  assets and increase equity. 
A)  equity and decrease assets. 
B)  equity and increase liabilities. 
C)  liabilities and increase assets. 
D)  assets and increase equity. D

Question 2

Match the descriptions with their terms:
-The date dividends are paid to shareholders.

Accepted Answer

A)  Company 
B)  Issue price 
C)  Payment date 
D)  Allotment 
E)  Treasurer
F) Limited liability
G) Cash dividend
H) Prospectus
I) Retained earnings
J) Dividend 
A)  Company 
B)  Issue price 
C)  Payment date 
D)  Allotment 
E)  Treasurer
F) Limited liability
G) Cash dividend
H) Prospectus
I) Retained earnings
J) Dividend C

Question 3

Which of the following items is not required to be disclosed in the notes explaining movements in the Retained earnings account for a year?

Accepted Answer

A)  Dividends declared. 
B)  Ordinary Shares issued. 
C)  Opening balance of Retained earnings. 
D)  Closing balance of Retained earnings. 
A)  Dividends declared. 
B)  Ordinary Shares issued. 
C)  Opening balance of Retained earnings. 
D)  Closing balance of Retained earnings. B

Question 4

A proprietary company may only have up to:

Accepted Answer

A)  2 shareholders. 
B)  10 shareholders. 
C)  25 shareholders. 
D)  50 shareholders. 
A)  2 shareholders. 
B)  10 shareholders. 
C)  25 shareholders. 
D)  50 shareholders.

Question 5

If a company declares a 10% share dividend on its ordinary shares, the account to be debited on the date of declaration is:

Accepted Answer

A)  Ordinary share dividend payable 
B)  Ordinary shares. 
C)  Paid-up capital. 
D)  Retained earnings. 
A)  Ordinary share dividend payable 
B)  Ordinary shares. 
C)  Paid-up capital. 
D)  Retained earnings.

Question 6

Major's Mining Ltd has 500,000 shares issued and outstanding at 30 June 2019. On 30 June 2019 the company's board of directors declared a $0.40 per share cash dividend to be paid on 1 August 2019 to shareholders on record at 15 July 2019.
Instructions: Prepare the necessary journal entries to be recorded on 
(a) the date of declaration 
(b) the date of record and 
(c) the date of payment

Accepted Answer

The answer of Major's Mining Ltd has 500,000 shares issued...

Question 7

An appropriate journal entry to record a cash dividend on declaration date is

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 8

A characteristic of an interim dividend is that it:

Accepted Answer

A)  is paid during a year. 
B)  may only be paid on balance date. 
C)  is paid out after the end of the financial year. 
D)  may only be paid in the form of cash. 
A)  is paid during a year. 
B)  may only be paid on balance date. 
C)  is paid out after the end of the financial year. 
D)  may only be paid in the form of cash.

Question 9

The equity section of Starstruck Corporation Ltd at 31 December 2019 included the following:
   On November 1 2020 the board of directors declared a $2.00 per share dividend on the ordinary shares, payable 30 November 2020 to shareholders of record on 15 November 2020.
Prepare the journal entries that should be made by Starstruck Corporation Ltd on the dates indicated below:

Accepted Answer

The answer of The equity section of Starstruck Corporation Ltd...

Question 10

Identify (by letter) each of the following characteristics as being an advantage (A) or a disadvantage (D) of the company form of business organisation.
A = Advantage
D = Disadvantage
-Ease of transfer of ownership

Accepted Answer

A) A 
B) D 
A) A 
B) D

Question 11

When a company issues shares with partial payment required on application and the remainder on allotment, the journal entry to record cash received on allotment of shares is:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 12

The Everglades Ltd has the following share transactions during 2019.
   Journalise the transactions for Everglades Ltd.

Accepted Answer

The answer of The Everglades Ltd has the following share...

Question 13

A discontinuing operation is a component of an entity that is:

Accepted Answer

A)  held for sale. 
B)  not profitable. 
C)  not solvent. 
D)  different to the other major operations of the entity. 
A)  held for sale. 
B)  not profitable. 
C)  not solvent. 
D)  different to the other major operations of the entity.

Question 14

Disclosures that aid in the determination of earning power or sustainable profit include:

Accepted Answer

A)  errors in prior periods. 
B)  changes in accounting estimates. 
C)  changes in accounting policies. 
D)  errors and changes in accounting estimates and policies. 
A)  errors in prior periods. 
B)  changes in accounting estimates. 
C)  changes in accounting policies. 
D)  errors and changes in accounting estimates and policies.

Question 15

An appropriate journal entry to record the receipt of application money is:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 16

The Corporations Act states that a dividend must not be paid by a company:

Accepted Answer

A)  if it would make the company insolvent. 
B)  unless the company has first obtained the approval of all creditors. 
C)  until it has been operating for a minimum of five years. 
D)  before the end of a financial year. 
A)  if it would make the company insolvent. 
B)  unless the company has first obtained the approval of all creditors. 
C)  until it has been operating for a minimum of five years. 
D)  before the end of a financial year.

Question 17

Companies can only pay a cash dividend in Australia and New Zealand if certain criteria are met. What are the criteria?

Accepted Answer

A company can only pay a cash dividend i

Question 18

When a company changes from one acceptable accounting method to another the cumulative effect of the change is disclosed:

Accepted Answer

A)  in the statement of changes in equity. 
B)  as a note to the financial statements. 
C)  in the income statement. 
D)  in the statement of cash flows. 
A)  in the statement of changes in equity. 
B)  as a note to the financial statements. 
C)  in the income statement. 
D)  in the statement of cash flows.

Question 19

When shares are issued by private placement, the journal entry to the event is:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 20

Please complete the following statements:
-The main difference between a public issue and a(n) ____________ placement of shares is that in a public issue the number and identity of the _______________ is not known with certainty in advance.

Accepted Answer

The answer of Please complete the following statements:
-The main difference...

When a company issues new shares the impact on the accounting equation is to increase:

Match the descriptions with their terms: -The date dividends are paid to shareholders.

Which of the following items is not required to be disclosed in the notes explaining movements in the Retained earnings account for a year?

A proprietary company may only have up to:

If a company declares a 10% share dividend on its ordinary shares, the account to be debited on the date of declaration is:

An appropriate journal entry to record a cash dividend on declaration date is

A characteristic of an interim dividend is that it:

Identify (by letter) each of the following characteristics as being an advantage (A) or a disadvantage (D) of the company form of business organisation. A = Advantage D = Disadvantage -Ease of transfer of ownership

When a company issues shares with partial payment required on application and the remainder on allotment, the journal entry to record cash received on allotment of shares is:

The Everglades Ltd has the following share transactions during 2019. Journalise the transactions for Everglades Ltd.

A discontinuing operation is a component of an entity that is:

Disclosures that aid in the determination of earning power or sustainable profit include:

An appropriate journal entry to record the receipt of application money is:

The Corporations Act states that a dividend must not be paid by a company:

Companies can only pay a cash dividend in Australia and New Zealand if certain criteria are met. What are the criteria?

When a company changes from one acceptable accounting method to another the cumulative effect of the change is disclosed:

When shares are issued by private placement, the journal entry to the event is:

Please complete the following statements: -The main difference between a public issue and a(n) placement of shares is that in a public issue the number and identity of the ___ is not known with certainty in advance.

An Introduction to Accounting

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Non-Current Assets

Reporting and Analysing Liabilities

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Analysing and Integrating Gaap

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters

Exam 10: Reporting and Analysing Equity

When a company issues new shares the impact on the accounting equation is to increase:

Match the descriptions with their terms: -The date dividends are paid to shareholders.

Which of the following items is not required to be disclosed in the notes explaining movements in the Retained earnings account for a year?

A proprietary company may only have up to:

If a company declares a 10% share dividend on its ordinary shares, the account to be debited on the date of declaration is:

An appropriate journal entry to record a cash dividend on declaration date is

A characteristic of an interim dividend is that it:

Identify (by letter) each of the following characteristics as being an advantage (A) or a disadvantage (D) of the company form of business organisation. A = Advantage D = Disadvantage -Ease of transfer of ownership

When a company issues shares with partial payment required on application and the remainder on allotment, the journal entry to record cash received on allotment of shares is:

The Everglades Ltd has the following share transactions during 2019. Journalise the transactions for Everglades Ltd.

A discontinuing operation is a component of an entity that is:

Disclosures that aid in the determination of earning power or sustainable profit include:

An appropriate journal entry to record the receipt of application money is:

The Corporations Act states that a dividend must not be paid by a company:

Companies can only pay a cash dividend in Australia and New Zealand if certain criteria are met. What are the criteria?

When a company changes from one acceptable accounting method to another the cumulative effect of the change is disclosed:

When shares are issued by private placement, the journal entry to the event is:

Please complete the following statements: -The main difference between a public issue and a(n) ____________ placement of shares is that in a public issue the number and identity of the _______________ is not known with certainty in advance.

An Introduction to Accounting

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Non-Current Assets

Reporting and Analysing Liabilities

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Analysing and Integrating Gaap

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters

Please complete the following statements: -The main difference between a public issue and a(n) placement of shares is that in a public issue the number and identity of the ___ is not known with certainty in advance.