Question 1

Match the descriptions with their terms:
-A document issued with an invitation to subscribe for shares, containing information about the offering company.

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

Question 2

Please complete the following statements:
-The earnings performance of a company can be measured by calculating the return on ______________.

Accepted Answer

The answer of Please complete the following statements:
-The earnings performance...

Question 3

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
-Government regulation

Accepted Answer

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

Question 4

Which of the following is not a significant advantage of debt financing over the issue of ordinary shares?

Accepted Answer

A)  Shareholder control is not affected. 
B)  The current owners retain control of the company. 
C)  Tax savings occur as interest on debt is deductible for tax purposes. 
D)  Return on equity is likely to be lower. 
A)  Shareholder control is not affected. 
B)  The current owners retain control of the company. 
C)  Tax savings occur as interest on debt is deductible for tax purposes. 
D)  Return on equity is likely to be lower.

Question 5

Match the descriptions with their terms:
-The process of issuing shares to selected applicants.

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

Question 6

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
-Continuous life

Accepted Answer

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

Question 7

The following data were collected from the financial statements of Jensen Limited:
   Required:
(a) Calculate the dividend payout ratio for this company for both years.
(b) State whether the dividend payout rate has improved or deteriorated in 2019.

Accepted Answer

(a)
 @#IMG-DLM& (b) The dividend payout

Question 8

The most likely level of profit to be obtained by a business in the future is known as its:

Accepted Answer

A)  earning power. 
B)  liquidity. 
C)  solvency. 
D)  profitability. 
A)  earning power. 
B)  liquidity. 
C)  solvency. 
D)  profitability.

Question 9

Benjamin Limited paid legal fees amounting to $20,000 and added the cost to a non-current asset account. The error was detected in the same accounting period and corrected by:

Accepted Answer

A)  increasing non-current assets and decreasing current assets. 
B)  increasing expenses and decreasing non-current assets. 
C)  decreasing expenses and decreasing equity. 
D)  decreasing revenue and increasing expenses. 
A)  increasing non-current assets and decreasing current assets. 
B)  increasing expenses and decreasing non-current assets. 
C)  decreasing expenses and decreasing equity. 
D)  decreasing revenue and increasing expenses.

Question 10

Companies can distribute both cash dividends and share dividends. What are the major differences between these two types of dividends?

Accepted Answer

Cash dividends entitle shareholders to a

Question 11

Pluto Corporation Limited declared and paid a dividend amounting to $550,000 during the year. Profit for the year was $820,000. The dividend payout rate for this company was:

Accepted Answer

A)  149%. 
B)  214%. 
C)  67%. 
D)  172%. 
A)  149%. 
B)  214%. 
C)  67%. 
D)  172%.

Question 12

The purpose of a share split is to increase the:

Accepted Answer

A)  market price of a company's shares. 
B)  marketability of the shares by lowering the market price. 
C)  retained earnings of the company. 
D)  dividend payout rate of the company. 
A)  market price of a company's shares. 
B)  marketability of the shares by lowering the market price. 
C)  retained earnings of the company. 
D)  dividend payout rate of the company.

Question 13

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
-Unlimited liability of owners
A.A
B.D

Accepted Answer

The answer of Identify (by letter) each of the following...

Question 14

A dividend is a distribution of:

Accepted Answer

A)  liabilities of a company to its shareholders. 
B)  revenue by a corporation to its owners. 
C)  accrued expenses to a corporation's shareholders. 
D)  profit by a company to its shareholders. 
A)  liabilities of a company to its shareholders. 
B)  revenue by a corporation to its owners. 
C)  accrued expenses to a corporation's shareholders. 
D)  profit by a company to its shareholders.

Question 15

The board of directors of Westlake Ltd declared a cash dividend of $2.50 per share on 22,000 ordinary shares on 15 July 2019. The dividend is to be paid on 15 August 2019 to shareholders of record on 31 July 2019. The correct entry to be recorded on 15 August 2019 will include a:

Accepted Answer

A)  debit to Dividends payable 
B)  debit to Retained earnings. 
C)  credit to Retained earnings. 
D)  credit to Dividends payable. 
A)  debit to Dividends payable 
B)  debit to Retained earnings. 
C)  credit to Retained earnings. 
D)  credit to Dividends payable.

Question 16

When recording the application money as share capital on allotment of shares to applicants, the following journal entry is made:

Accepted Answer

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

Question 17

The board of directors of Westlake Ltd declared a cash dividend of $2.50 per share on 22,000 ordinary shares on 15 July 2019. The dividend is to be paid on 15 August 2019, to shareholders of record on 31 July 2019. The effects of the journal entry to record the declaration of the dividend on 15 July 2019 are to:

Accepted Answer

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

Question 18

Retained earnings of a company are classified on the statement of financial position as part of:

Accepted Answer

A)  Revenue. 
B)  Assets. 
C)  Cash at bank. 
D)  Shareholders' equity. 
A)  Revenue. 
B)  Assets. 
C)  Cash at bank. 
D)  Shareholders' equity.

Question 19

An event that involves the issue of additional shares to shareholders according to their percentage ownership and a reduction in the stated value of each share is a:

Accepted Answer

A)  share dividend. 
B)  cash dividend. 
C)  share split. 
D)  private placement. 
A)  share dividend. 
B)  cash dividend. 
C)  share split. 
D)  private placement.

Question 20

Please complete the following statements:
-Three important dates associated with dividends are the: (1)______________ date; the (2)______________ date; and the (3)__________________ date.

Accepted Answer

Answer; de

Match the descriptions with their terms: -A document issued with an invitation to subscribe for shares, containing information about the offering company.

Please complete the following statements: -The earnings performance of a company can be measured by calculating the return on ______________.

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 -Government regulation

Which of the following is not a significant advantage of debt financing over the issue of ordinary shares?

Match the descriptions with their terms: -The process of issuing shares to selected applicants.

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 -Continuous life

The following data were collected from the financial statements of Jensen Limited: Required: (a) Calculate the dividend payout ratio for this company for both years. (b) State whether the dividend payout rate has improved or deteriorated in 2019.

The most likely level of profit to be obtained by a business in the future is known as its:

Benjamin Limited paid legal fees amounting to $20,000 and added the cost to a non-current asset account. The error was detected in the same accounting period and corrected by:

Companies can distribute both cash dividends and share dividends. What are the major differences between these two types of dividends?

Pluto Corporation Limited declared and paid a dividend amounting to $550,000 during the year. Profit for the year was $820,000. The dividend payout rate for this company was:

The purpose of a share split is to increase the:

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 -Unlimited liability of owners A.A B.D

A dividend is a distribution of:

The board of directors of Westlake Ltd declared a cash dividend of $2.50 per share on 22,000 ordinary shares on 15 July 2019. The dividend is to be paid on 15 August 2019 to shareholders of record on 31 July 2019. The correct entry to be recorded on 15 August 2019 will include a:

When recording the application money as share capital on allotment of shares to applicants, the following journal entry is made:

Retained earnings of a company are classified on the statement of financial position as part of:

An event that involves the issue of additional shares to shareholders according to their percentage ownership and a reduction in the stated value of each share is a:

Please complete the following statements: -Three important dates associated with dividends are the: (1) date; the (2) date; and the (3)______ date.

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

Match the descriptions with their terms: -A document issued with an invitation to subscribe for shares, containing information about the offering company.

Please complete the following statements: -The earnings performance of a company can be measured by calculating the return on ______________.

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 -Government regulation

Which of the following is not a significant advantage of debt financing over the issue of ordinary shares?

Match the descriptions with their terms: -The process of issuing shares to selected applicants.

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 -Continuous life

The following data were collected from the financial statements of Jensen Limited: Required: (a) Calculate the dividend payout ratio for this company for both years. (b) State whether the dividend payout rate has improved or deteriorated in 2019.

The most likely level of profit to be obtained by a business in the future is known as its:

Benjamin Limited paid legal fees amounting to $20,000 and added the cost to a non-current asset account. The error was detected in the same accounting period and corrected by:

Companies can distribute both cash dividends and share dividends. What are the major differences between these two types of dividends?

Pluto Corporation Limited declared and paid a dividend amounting to $550,000 during the year. Profit for the year was $820,000. The dividend payout rate for this company was:

The purpose of a share split is to increase the:

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 -Unlimited liability of owners A.A B.D

A dividend is a distribution of:

The board of directors of Westlake Ltd declared a cash dividend of $2.50 per share on 22,000 ordinary shares on 15 July 2019. The dividend is to be paid on 15 August 2019 to shareholders of record on 31 July 2019. The correct entry to be recorded on 15 August 2019 will include a:

When recording the application money as share capital on allotment of shares to applicants, the following journal entry is made:

Retained earnings of a company are classified on the statement of financial position as part of:

An event that involves the issue of additional shares to shareholders according to their percentage ownership and a reduction in the stated value of each share is a:

Please complete the following statements: -Three important dates associated with dividends are the: (1)______________ date; the (2)______________ date; and the (3)__________________ date.

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: -Three important dates associated with dividends are the: (1) date; the (2) date; and the (3)______ date.