Question 1

Which of the following business entities is not required to prepare a tax return?

Accepted Answer

A)  partnership. 
B)  trust. 
C)  company. 
D)  sole trader. 
A)  partnership. 
B)  trust. 
C)  company. 
D)  sole trader.

Question 2

A partnership with four partners would have how many capital accounts in the equity section of the balance sheet?

Accepted Answer

A)  One. 
B)  Two. 
C)  Four. 
D)  Eight. 
A)  One. 
B)  Two. 
C)  Four. 
D)  Eight.

Question 3

A company must be registered with which regulatory authority?

Accepted Answer

A)  Corporations Act. 
B)  CPA Australia. 
C)  Australian Securities and Investments Commission. 
D)  Australian Securities Exchange. 
A)  Corporations Act. 
B)  CPA Australia. 
C)  Australian Securities and Investments Commission. 
D)  Australian Securities Exchange.

Question 4

HRM Consulting Pty Ltd started the year with total assets of $80 000 and total liabilities of $40 000.During the year the business earned $150 000 in income and incurred $95 000 in expenses.Dividends of $20 000 were paid during the year.HRM's profit for the period was:

Accepted Answer

A)  $55 000 
B)  $40 000 
C)  $30 000 
D)  $35 000 
A)  $55 000 
B)  $40 000 
C)  $30 000 
D)  $35 000

Question 5

A business that is not a separate legal entity,where any claims for business debts can be made against the owner's personal assets,is a:

Accepted Answer

A)  trust. 
B)  sole trader. 
C)  proprietary company. 
D)  joint venture. 
A)  trust. 
B)  sole trader. 
C)  proprietary company. 
D)  joint venture.

Question 6

Which of the following characteristics of a company business structure is true?

Accepted Answer

A)  Owners have limited liability. 
B)  Easy to set up. 
C)  Not a separate legal entity. 
D)  Owners pay individual tax on company profits. 
A)  Owners have limited liability. 
B)  Easy to set up. 
C)  Not a separate legal entity. 
D)  Owners pay individual tax on company profits.

Question 7

The financial report that details assets,liabilities and equity is the ________________ ________________.

Accepted Answer

The answer of The financial report that details assets,liabilities and...

Question 8

A major (advantage/disadvantage)____________________ of a sole trader is the set up costs.

Accepted Answer

The answer of A major (advantage/disadvantage)____________________ of a sole trader...

Question 9

Which of the following is a disadvantage of the company form of business?

Accepted Answer

A)  It has an unlimited life. 
B)  It must comply with the Corporations Act 2001 and other legislation. 
C)  Its shareholders have limited liability for debts incurred by the business. 
D)  It has the ability to raise large amounts of capital. 
A)  It has an unlimited life. 
B)  It must comply with the Corporations Act 2001 and other legislation. 
C)  Its shareholders have limited liability for debts incurred by the business. 
D)  It has the ability to raise large amounts of capital.

Question 10

A family trust is a trust:

Accepted Answer

A)  which holds a collection of assets on behalf of various non-family members. 
B)  from which income is distributed to the family members according to their respective unit holdings in the trust. 
C)  that has a variety of investments in equity, property and cash management. 
D)  which provides the trustee with discretion, according to the trust deed, over who receives distributions from the trust. 
A)  which holds a collection of assets on behalf of various non-family members. 
B)  from which income is distributed to the family members according to their respective unit holdings in the trust. 
C)  that has a variety of investments in equity, property and cash management. 
D)  which provides the trustee with discretion, according to the trust deed, over who receives distributions from the trust.

Question 11

If total liabilities increased by $15 000 and equity decreased by $10 000 over a period,then total assets must have changed by?

Accepted Answer

A)  $15 000 increase. 
B)  $25 000 increase. 
C)  $5 000 decrease. 
D)  $5 000 increase. 
A)  $15 000 increase. 
B)  $25 000 increase. 
C)  $5 000 decrease. 
D)  $5 000 increase.

Question 12

The advantage of a partnership over a sole trader business structure is:

Accepted Answer

A)  limited liability. 
B)  not required to prepare financial statements in accordance with accounting standards. 
C)  mutual agency. 
D)  greater access to skills and resources. 
A)  limited liability. 
B)  not required to prepare financial statements in accordance with accounting standards. 
C)  mutual agency. 
D)  greater access to skills and resources.

Question 13

A partnership has the following characteristics:

Accepted Answer

A)  easy transfer of ownership and no personal liability. 
B)  harder to raise funds and gives the owner full control. 
C)  shared control, increased skills and resources. 
D)  separate taxation requirements and substantial government regulation. 
A)  easy transfer of ownership and no personal liability. 
B)  harder to raise funds and gives the owner full control. 
C)  shared control, increased skills and resources. 
D)  separate taxation requirements and substantial government regulation.

Question 14

Retained earnings at the end of the period are equal to:

Accepted Answer

A)  assets minus dividends. 
B)  retained earnings at the beginning of the period plus profit earned for the period. 
C)  retained earnings at the beginning of the period plus profit earned for the period minus dividends. 
D)  retained earnings at the beginning of the period plus profit earned for the period minus expenses. 
A)  assets minus dividends. 
B)  retained earnings at the beginning of the period plus profit earned for the period. 
C)  retained earnings at the beginning of the period plus profit earned for the period minus dividends. 
D)  retained earnings at the beginning of the period plus profit earned for the period minus expenses.

Question 15

Which of the following statements is true for a public company?

Accepted Answer

A) 	It must follow the requirements of the Corporations Act. 
B) 	It may be a company limited by guarantee. 
C) 	It can issue either ordinary or preference shares. 
D) 	All of the statements are true. 
A) 	It must follow the requirements of the Corporations Act. 
B) 	It may be a company limited by guarantee. 
C) 	It can issue either ordinary or preference shares. 
D) 	All of the statements are true.

Question 16

The full implementation of differential reporting came into effect on:

Accepted Answer

A)  1 July 2013. 
B)  1 January 2014. 
C)  1 July 2014. 
D)  1 January 2015. 
A)  1 July 2013. 
B)  1 January 2014. 
C)  1 July 2014. 
D)  1 January 2015.

Question 17

An expense that would not appear in a partnership income statement is:

Accepted Answer

A)  interest expense. 
B)  depreciation expense. 
C)  income tax expense. 
D)  advertising expense. 
A)  interest expense. 
B)  depreciation expense. 
C)  income tax expense. 
D)  advertising expense.

Question 18

In a unit trust,income is distributed to the parties according to their respective _____________ holdings in that trust.

Accepted Answer

The answer of In a unit trust,income is distributed to...

Question 19

Which of the following is not true for a private company?

Accepted Answer

A)  The company name includes the words 'Pty Ltd'. 
B)  It is relatively easy to set up. 
C)  It can have up to 50 shareholders. 
D)  It is a common form of business structure for large-sized entities. 
A)  The company name includes the words 'Pty Ltd'. 
B)  It is relatively easy to set up. 
C)  It can have up to 50 shareholders. 
D)  It is a common form of business structure for large-sized entities.

Question 20

A disadvantage of a trust is:

Accepted Answer

A)  minimal government regulation. 
B)  difficult and expensive to set up. 
C)  a complex legal structure. 
D)  tax minimisation. 
A)  minimal government regulation. 
B)  difficult and expensive to set up. 
C)  a complex legal structure. 
D)  tax minimisation.

Which of the following business entities is not required to prepare a tax return?

A partnership with four partners would have how many capital accounts in the equity section of the balance sheet?

A company must be registered with which regulatory authority?

HRM Consulting Pty Ltd started the year with total assets of $80 000 and total liabilities of $40 000.During the year the business earned $150 000 in income and incurred $95 000 in expenses.Dividends of $20 000 were paid during the year.HRM's profit for the period was:

A business that is not a separate legal entity,where any claims for business debts can be made against the owner's personal assets,is a:

Which of the following characteristics of a company business structure is true?

The financial report that details assets,liabilities and equity is the .

A major (advantage/disadvantage)____________________ of a sole trader is the set up costs.

Which of the following is a disadvantage of the company form of business?

A family trust is a trust:

If total liabilities increased by $15 000 and equity decreased by $10 000 over a period,then total assets must have changed by?

The advantage of a partnership over a sole trader business structure is:

A partnership has the following characteristics:

Retained earnings at the end of the period are equal to:

Which of the following statements is true for a public company?

The full implementation of differential reporting came into effect on:

An expense that would not appear in a partnership income statement is:

In a unit trust,income is distributed to the parties according to their respective _____________ holdings in that trust.

Which of the following is not true for a private company?

A disadvantage of a trust is:

Introduction to Accounting and Business Decision Making

Accounting in Society

Business Transactions

Balance Sheet

Statement of Profit or Loss and Statement of Changes in Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Costvolumeprofit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters

Exam 3: Business Structures

Which of the following business entities is not required to prepare a tax return?

A partnership with four partners would have how many capital accounts in the equity section of the balance sheet?

A company must be registered with which regulatory authority?

HRM Consulting Pty Ltd started the year with total assets of $80 000 and total liabilities of $40 000.During the year the business earned $150 000 in income and incurred $95 000 in expenses.Dividends of $20 000 were paid during the year.HRM's profit for the period was:

A business that is not a separate legal entity,where any claims for business debts can be made against the owner's personal assets,is a:

Which of the following characteristics of a company business structure is true?

The financial report that details assets,liabilities and equity is the ________________ ________________.

A major (advantage/disadvantage)____________________ of a sole trader is the set up costs.

Which of the following is a disadvantage of the company form of business?

A family trust is a trust:

If total liabilities increased by $15 000 and equity decreased by $10 000 over a period,then total assets must have changed by?

The advantage of a partnership over a sole trader business structure is:

A partnership has the following characteristics:

Retained earnings at the end of the period are equal to:

Which of the following statements is true for a public company?

The full implementation of differential reporting came into effect on:

An expense that would not appear in a partnership income statement is:

In a unit trust,income is distributed to the parties according to their respective _____________ holdings in that trust.

Which of the following is not true for a private company?

A disadvantage of a trust is:

Introduction to Accounting and Business Decision Making

Accounting in Society

Business Transactions

Balance Sheet

Statement of Profit or Loss and Statement of Changes in Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Costvolumeprofit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters

The financial report that details assets,liabilities and equity is the .