1. Which of the following statements is incorrect? A. Between the date of record and the date of payment, the shares are selling ex-dividend which means that the share can be sold, and the original shareholder will no longer have the right to receive the dividends on payment date. B. When share dividends are declared and issued, the assets of the entity are the same before and after the issuance of the share dividends. C. When share dividends are different from those held, the original cost of the investment is apportioned between the original shares and the share dividends on the basis of market value of each at the date of receipt. D. When shares are received in lieu of cash dividends, the dividends are considered income at fair value of the shares received because such shares are in effect property dividends.

2. Which of the following statements is correct? A. When cash is received in lieu of share dividends, the share dividends are assumed to be received and subsequently sold at the cash received; thus, a gain or loss may be recognized. B. Split down is the reverse of the split up whereby the outstanding shares are called in and replaced by a smaller number, accompanied by a decrease in the par or stated value. C. Bonus issues are additional contribution of the shareholders and are recorded as additional cost of the investment. D. The purpose of the share right is to give the shareholders the chance to preserve their equity interest in the corporation; the ownership of share rights is evidenced by instruments or certificates called right issue.

3. Which of the following is correct? A. When share rights are exercised, the cost of the new investment includes the subscription price and the cost of all the share rights received, whether exercised or not. B. If share rights are not accounted for separately, and the share rights are not exercised but expired, a loss on share rights is debited. C. On the date of record, the warrants evidencing the share rights are issued to the shareholders; on or after this date, the shares are said to be selling right-on. D. The theoretical or parity value of one right is always higher if the market value of the share is ex-right than if the market of the share is right-on.

4. Which of the following is correct? A. Debt investments held for collection of contractual cash flows and for sale of the financial asset are measured at FVOCI by irrevocable election or fair value option. B. Equity investments held for trading are measured at FVOCI by irrevocable election. C. Debt investments held for collection of contractual cash flows are measured at FVPL by irrevocable designation of fair value option. D. All other investments in quoted equity instruments are measured using the equity method of accounting.