Question 1

Dividends must be paid out of current year's profits.If a loss is made in the current year a dividend can not be paid.

Accepted Answer

A) True 
 B)False

Question 2

Which statements are true?:
I.$\quad$ Dividends can not be paid out of amounts contributed by owners as share capital.
II.$\quad$Directors must ascertain that the company is solvent before they pay a dividend.
III.$\quad$As a general rule dividends must only be paid from profits.For this purpose profits includes reserves.
IV.$\quad$For purposes of paying dividends profits are not limited to the current period.

Accepted Answer

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

Question 3

Which of the following statements is true?

Accepted Answer

A) For public companies, dividend entitlements are the same for all shares within a class, unless the company's constitution or a special resolution provides otherwise. 
B) For proprietary companies, there is a replaceable rule that, subject to the agreement under which the shares were issued, the directors may pay dividends as they see fit. 
C) For no liability companies, all ordinary shares have the same dividend entitlement, but there is no right to a dividend if a call has been made that is still outstanding. 
D) all of the above 
A) For public companies, dividend entitlements are the same for all shares within a class, unless the company's constitution or a special resolution provides otherwise. 
B) For proprietary companies, there is a replaceable rule that, subject to the agreement under which the shares were issued, the directors may pay dividends as they see fit. 
C) For no liability companies, all ordinary shares have the same dividend entitlement, but there is no right to a dividend if a call has been made that is still outstanding. 
D) all of the above

Question 4

Langer Ltd is to restructure its owners' equity by making its issued shares paid up to $0.50.It will do this by transferring half the amount from the asset revaluation reserve and the remainder from retained profits.Langer Ltd currently has 1 000 000 shares on issue paid up to $0.25.The asset revaluation reserve balance is $50 000.What is the minimum amount by which Langer Ltd must revalue upwards its non-current assets so that it can effect this transfer?

Accepted Answer

A) $75 000 
B) $125 000 
C) $200 000 
D) $250 000 
A) $75 000 
B) $125 000 
C) $200 000 
D) $250 000

Question 5

A discretionary reserve

Accepted Answer

A) is one that allows management to transfer amounts to and from the reserve 
B) is one that allows management to transfer amounts to the reserve but not out of the reserve except for the purpose indicated by the reserve 
C) is one required by the Corporations Act or an accounting standard 
D) is one required by a contract with a creditor 
A) is one that allows management to transfer amounts to and from the reserve 
B) is one that allows management to transfer amounts to the reserve but not out of the reserve except for the purpose indicated by the reserve 
C) is one required by the Corporations Act or an accounting standard 
D) is one required by a contract with a creditor

Dividends must be paid out of current year's profits.If a loss is made in the current year a dividend can not be paid.

Which of the following statements is true?

A discretionary reserve

Companies and Corporate Regulation

Objectives of Company Reporting, Conceptual Elements and Terminology

Forming a Company and Issuing Shares

Reorganisation of Share Capital

Debt Securities

Foreign Currency Transactions and an Introduction to Hedging

Advanced Asset and Liability Issues

Income Tax

Reports and Disclosures I: Overview

Reports and Disclosures Ii: the Financial Statements

Receivership and Voluntary Administration

Liquidations

External Administration Reports and Accounts

Investments in New Assets; Introduction to Business Combinations and Associates

The Corporate Group

Acquisition Method Introduction and Substitution

Acquisition Method Application After Control Date

Intra-Group Transactions

Direct Non-Controlling Interest

Changes to Parent Investment in Subsidiaries

Indirect Interest

Translation of Foreign Currency Statements

Consolidated Cash Flow Statements

Equity Accounting Expanded and Joint Ventures

Segment Reporting

Filters

Exam 4: Profits, Reserve and Distributions to Owners

Dividends must be paid out of current year's profits.If a loss is made in the current year a dividend can not be paid.

Which of the following statements is true?

A discretionary reserve

Companies and Corporate Regulation

Objectives of Company Reporting, Conceptual Elements and Terminology

Forming a Company and Issuing Shares

Reorganisation of Share Capital

Debt Securities

Foreign Currency Transactions and an Introduction to Hedging

Advanced Asset and Liability Issues

Income Tax

Reports and Disclosures I: Overview

Reports and Disclosures Ii: the Financial Statements

Receivership and Voluntary Administration

Liquidations

External Administration Reports and Accounts

Investments in New Assets; Introduction to Business Combinations and Associates

The Corporate Group

Acquisition Method Introduction and Substitution

Acquisition Method Application After Control Date

Intra-Group Transactions

Direct Non-Controlling Interest

Changes to Parent Investment in Subsidiaries

Indirect Interest

Translation of Foreign Currency Statements

Consolidated Cash Flow Statements

Equity Accounting Expanded and Joint Ventures

Segment Reporting

Filters