When Accounting for the Issue of Shares Placing Application Monies

Multiple Choice

When accounting for the issue of shares placing application monies in a separate Cash Trust account is required:

A) to meet the obligation by the company to remit the funds to ASIC.
B) before the share issue is finalised the money does not belong to the company and some or all of it may need to be refunded
C) because the bank requires it
D) it is administratively easier for the company if the money is placed in a separate account