1.4 Which of the following statements correctly depicts the findings of academic paper Song, Wang and Parry, (2010)?

Select one:

In established markets, performance is more positively associated with the use of formal processes for utilizing market information, compared with emerging markets.

In emerging markets, performance is more positively associated with the use of formal processes for utilizing market information, compared with established markets.

None of the statements presented here correctly represent that academic paper.

Market information was not helpful to either new or established businesses.

2. Which of the following statements is NOT correct under Australian AASB Accounting Standards in the context of consolidation?

Select one:

Control could be obtained over a public listed company by obtaining 19 per cent of its voting shares.

It is possible to control another company by means of economic pressure alone.

Control is effectively the power to govern the operating policies of an entity most of the time to obtain benefits from its activities.

Control that is joint control does not satisfy the definition of control under accounting standards in respect of consolidated group formation.

3.

Trump Ltd acquired 20% of and significant influence over the operations of Nancy Ltd on 1 July 20X0. At that date, the equity of Nancy Ltd comprised retained profits of $800,000 and paid up capital of $3,000,000. During the financial year ended 30 June 20X1, Nancy Ltd paid a final dividend of $300,000 out of profits earned in the year ended 30 June 20X1. Trump Ltd does not control any entities. What is the journal entry to record these dividends for Trump Ltd for the year ended 30 June 20X1 using the equity method?

Select one:

A. Accounts Debit $ Credit $ Bank 60,000 Dividend revenue 60,000 ...

B. Accounts Debit $ Credit $ Bank 300,000 Dividend revenue 300,000 ...

C. Accounts Debit $ Credit $ Bank 60,000 Investment in Nancy 60,000 ...

D. Accounts Debit $ Credit $ Bank 300,000 Investment in Nancy 300,000 ...