Question 1

Match the descriptions with their terms:
-A distribution by a company to its shareholders on a pro rata basis.

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

When preparing the financial statements of Somersby Ltd, the accountant found the following information: opening balance of Retained earnings $15,000; Interim dividends paid $2,500; Profit earned $20,000; Dividends declared $5,000. The closing balance of Retained earnings for Somersby Ltd is:

Accepted Answer

A)  $7,500. 
B)  $30 000. 
C)  $27,500. 
D)  $15 000. 
A)  $7,500. 
B)  $30 000. 
C)  $27,500. 
D)  $15 000.

Question 3

Prior period errors must be corrected:

Accepted Answer

A)  retrospectively. 
B)  in the next accounting period. 
C)  in the subsequent accounting period. 
D)  when they are detected. 
A)  retrospectively. 
B)  in the next accounting period. 
C)  in the subsequent accounting period. 
D)  when they are detected.

Question 4

Match the descriptions with their terms:
-The amount of profit that has not been distributed by a company to its 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

Question 5

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
-Ability to acquire capital

Accepted Answer

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

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
-Separate legal entity

Accepted Answer

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

Question 7

The effect of changes in accounting estimates must be disclosed if they:

Accepted Answer

A)  affect profit. 
B)  affect assets. 
C)  are material. 
D)  change the amount of cash held in the bank. 
A)  affect profit. 
B)  affect assets. 
C)  are material. 
D)  change the amount of cash held in the bank.

Question 8

Match the descriptions with their terms:
-Amount received on issue of a share, debenture or unsecured note.

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 9

A corporation has all of the following characteristics except:

Accepted Answer

A)  an existence that is separate and distinct from its owners. 
B)  limited liability. 
C)  the right to hold public office. 
D)  continuous life. 
A)  an existence that is separate and distinct from its owners. 
B)  limited liability. 
C)  the right to hold public office. 
D)  continuous life.

Question 10

Please complete the following statements:
-A debit balance in retained earnings account represents a(n) ________________.

Accepted Answer

The answer of Please complete the following statements:
-A debit balance...

Question 11

Companies that have high growth rates are often characterised by:

Accepted Answer

A)  high dividend payout rates. 
B)  low dividend payout rates. 
C)  large dividend payouts to shareholders. 
D)  excessive dividends to shareholders. 
A)  high dividend payout rates. 
B)  low dividend payout rates. 
C)  large dividend payouts to shareholders. 
D)  excessive dividends to shareholders.

Question 12

A company with share capital comprising 15,000 $2.50 shares engages in a 5-for-1 share split. After the share split the share capital of the company is:

Accepted Answer

A)  $37,500. 
B)  $5,000. 
C)  $6,000. 
D)  $3,000. 
A)  $37,500. 
B)  $5,000. 
C)  $6,000. 
D)  $3,000.

Question 13

Match the descriptions with their terms:
-The person with custody of a company's funds and responsibility for maintaining the company's cash position.

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 14

A major disadvantage for shareholders, of using debt financing, is:

Accepted Answer

A)  shareholder control is altered. 
B)  interest is not deductible for tax purposes. 
C)  debtholders assume full control of the company. 
D)  the company is locked in to fixed payments of interest and principal. 
A)  shareholder control is altered. 
B)  interest is not deductible for tax purposes. 
C)  debtholders assume full control of the company. 
D)  the company is locked in to fixed payments of interest and principal.

Question 15

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
-Taxable entity

Accepted Answer

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

Match the descriptions with their terms: -A distribution by a company to its shareholders on a pro rata basis.

When preparing the financial statements of Somersby Ltd, the accountant found the following information: opening balance of Retained earnings $15,000; Interim dividends paid $2,500; Profit earned $20,000; Dividends declared $5,000. The closing balance of Retained earnings for Somersby Ltd is:

Prior period errors must be corrected:

Match the descriptions with their terms: -The amount of profit that has not been distributed by a company to its shareholders.

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 -Ability to acquire capital

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 -Separate legal entity

The effect of changes in accounting estimates must be disclosed if they:

Match the descriptions with their terms: -Amount received on issue of a share, debenture or unsecured note.

A corporation has all of the following characteristics except:

Please complete the following statements: -A debit balance in retained earnings account represents a(n) ________________.

Companies that have high growth rates are often characterised by:

A company with share capital comprising 15,000 $2.50 shares engages in a 5-for-1 share split. After the share split the share capital of the company is:

Match the descriptions with their terms: -The person with custody of a company's funds and responsibility for maintaining the company's cash position.

A major disadvantage for shareholders, of using debt financing, is:

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 -Taxable entity

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 distribution by a company to its shareholders on a pro rata basis.

When preparing the financial statements of Somersby Ltd, the accountant found the following information: opening balance of Retained earnings $15,000; Interim dividends paid $2,500; Profit earned $20,000; Dividends declared $5,000. The closing balance of Retained earnings for Somersby Ltd is:

Prior period errors must be corrected:

Match the descriptions with their terms: -The amount of profit that has not been distributed by a company to its shareholders.

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 -Ability to acquire capital

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 -Separate legal entity

The effect of changes in accounting estimates must be disclosed if they:

Match the descriptions with their terms: -Amount received on issue of a share, debenture or unsecured note.

A corporation has all of the following characteristics except:

Please complete the following statements: -A debit balance in retained earnings account represents a(n) ________________.

Companies that have high growth rates are often characterised by:

A company with share capital comprising 15,000 $2.50 shares engages in a 5-for-1 share split. After the share split the share capital of the company is:

Match the descriptions with their terms: -The person with custody of a company's funds and responsibility for maintaining the company's cash position.

A major disadvantage for shareholders, of using debt financing, is:

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 -Taxable entity

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