1. Provide some examples of items that would be adjusted directly against equity, rather than being included as part of profit or loss?

2. It is often argued that managers would prefer to show lower levels of debt than higher levels of debt. Why do you think this might be so?

3. When would payments made to employees be considered to be an asset?

4. What are share splits and what accounting entries are necessary when a share split is undertaken?

5. What forms of preferential treatment can the holders of preference shares receive over and above the rights of holders of ordinary shares?