1.

Which of the following statements relating to shares is not correct?

Select one:

a. Each share in a company carries a right to share in the assets on the liquidation of the company.

b. A share represents an ownership right in a company.

c. Each share in a company carries a right to vote for directors of the company

d. Each share in a company carries a right to share proportionately in all new share issues of a company.

2.

Accounting for share buy-backs is prescribed by:

Select one:

a. generally accepted accounting practices

b. an IFRS accounting standard

c. an IAS accounting standard

d. an IFRIC interpretation

3.

Moonshine Company issued 30 000 share options to subscribe for ordinary shares. The exercise price on the options was $2 per share. If all options were exercised on the due date, the journal entry that would be recorded is:

Select one:

a. Cash Dr 60 000

Share capital ordinary Cr 60 000

b. Share capital ordinary Dr 60 000

Cash Cr 60 000

c. Share options ordinary Dr 60 000

Share capital ordinary Cr 60 000

d. Share options reserve Dr 60 000

Cash Cr 60 000

4.

The Australian financial news quoted US$1.00 equals A$0.7836/0.8105. What does this represent?

Select one:

a. A bid rate of A$0.8105

b. A bid-ask spread of A$0.0269

c. The direct form of quotation

d. An offer rate of A$0.7836