Exam 6: Introduction to Limited Companies

A share issue where the company gives existing shareholders the first right of refusal of the issue is:

The company 'Raider Limited' must be:

The shareholders are the owners of a company. The shareholders' equity of Adventure Travel Agency Pty Ltd is set out below. (Note that all shares were issued when the company was originally set up and there have been no subsequent issues.) Adventure Travel Agency Pty Ltd Statement of Financial Position (extract)as at 30 June 2018 Shareholders' equity Share Capital - 60,000 ordinary shares sold for \ 10 each \ 600,000 Retained profits 20,000 General reserve 12,000 Asset revaluation reserve Total equity \ 812,000 REQUIRED: a)Briefly explain the meaning of each of the four components of shareholders' equity, giving an example of how each might have arisen. b)Indicate which of the four components are legally available for the payments of cash dividends. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Which of these is not an advantage of a private company compared to a partnership?

Which item(s)can be a component of shareholders' equity?

Which of the following accounts only appears on group financial statements?

Which of these is not a consequence of the status of a company as a separate legal entity?

Which type of company has the right to raise money from the general public?

Which of the following is unlikely to be a reserve found in a company's statement of financial position?

Why is a company required to retain a specific part of its capital?

What is the main stock exchange in Australia?

Redeemable preference shares:

An audit fee expense will most likely be found in the statement of financial performance for a:

If a company issues 25 000 ordinary shares which are sold at $4 per share, the effect on the accounting equation is:

What is the main difference between the financial statements prepared for a sole proprietorship and those prepared for a company?

Which statement concerning a rights issue is true?

Parco pays $1 000 000 for all of Subco's common shares. Subco's net assets are carried on Subco's books for $900 000 and have a fair value of $950 000. What is Parco's goodwill on consolidation?

A public issue of shares where the investor must state in advance the amount they are willing to pay for the shares is called a:

If the retained profit figure in a company statement of financial position increases from the beginning of the year to the end of the year, it is most probable that:

Which of the following statements is correct?