1.Which feature of preference share makes it more of a liability than an equity account?

ACallable-one that gives the issuing corporation the right but not the obligation, to reacquire and retire the share at a fixed or determinable call price.

BConvertible-entitles theholder thereof to exchange the same to ordinary share, at the option of the shareholders.

CRedeemable is one that must be retired or reacquired by the issuing corporation, either at the option of the shareholder, or in most cases, at a certain or determinable date.

DParticipating are those that provide for additional dividends to be paid to the holders thereof on top of the fixed preferential or dividend rate.

2.Which of the following form of dividend is taken out of paid in capital?

ALiquidating dividend

BProperty dividend

CBonus issue or share dividend

DScrip Dividend

3.When equipment is declared as a property dividend, retained earnings is

Acharged on the date of declaration at the fair value of the equipment at the time of declaration

Bcharged on the date of declaration at the carrying amount of the equipment at the time of declaration

Ccharged on the date of declaration at the lower of the fair value or carrying amount of the equipment at the time of declaration

Dcharged on the date of declaration at the fair value or carrying amount of the equipment, whichever is higher at the time of declaration

4.In case of a large share dividend or bonus issue, the amount capitalized or charged against retained earnings is

Apar value or stated value of shares to be issued

Bfair value of the shares to be issued at the time of declaration

Cfair value of the shares to be issued at the time of issuance

Dpar value or fair value of shares to be issued, whichever is higher

5.All of the following forms of dividends are charged against retained earnings at the time of declaration except

Acash dividend

Bshare dividend or bonus issue

Cproperty dividend

Dliquidating dividend

6.Dividend representing a return of investment is called

Ascrip dividend

Bliquidating dividend

Cproperty dividend

Dshare dividend

7.The following are components of the shareholders' equity except

Arevaluation surplus

Badditional paid in capital

Cshare capital and subscribed share capital

Dgain on sale of financial assets at fair value thru profit or loss

8.The declaration of which type of dividends will not affect the total shareholders' equity?

ABonus issue

BCash dividends

CProperty dividends

DScrip dividends

9.At reporting date, the number of ordinary shares issued will exceed the number of ordinary shares outstanding as a result of

Ashare split

Bdeclaration and distribution of bonus issue

Cpurchase of treasury shares

Dissue of shares previously subscribed

10.A preference share that has a claim on any prior year dividends that remained unpaid/undeclared?

Acumulative

Bparticipating

Cnon-cumulative

Dnon-participating

11.Assuming that the issuing corporation has only one kind of share capital, a transfer from retained earnings to contributed capital equal to the fair value of the shares issued is ordinarily a characteristic of

Aeither a bonus issue or share split

Bneither a bonus issue nor a share split

Ca share split but not a bonus issue

Da bonus issue but not a share split

12.Under IFRS 2 Share Based Payment, the basis for measurement of share options is

AFair value at the date of grant

BFair value at each reporting period

CFair value at the date of exercise

DIntrinsic value at each reporting period

13.Under IFRS 2, Share Based Payment, the value of share options that lapse after vesting period shall

Acredited to expense during the period the options lapse

Bcredited to income during the period the options lapse

Cremain in equity under the same account or transferred to another equity component appropriately described

Dtransferred to a liability account

14.When should the compensation expense be recorded as a result of share options granted?

ADuring the year of the grant

BDuring the year when the share options ultimately vest

CDuring the years when employees are required to render service to the employer or to satisfy some vesting conditions

DDuring the year when the share options first becomes exercisable

15.Gives the holder the right but not the obligation, to subscribe to the entity's shares at a fixed or determinable price for a specified period.

AShare options

BShare rights

CShare split

DShare warrants

16.A share-based payment transaction in which the entity receives goods or services as consideration for equity instruments of the entity.

AEquity-settled share-based payment

BCash-settled share-based payment

CEquity settled share-based payment with cash alternatives

DCash-settled share-based payment with equity alternatives

17.A share-based payment transaction in which the entity acquires goods or services by incurring a liability to transfer cash or other assets to the supplier of goods or services for amounts that are based on the price(value) of the entity's shares or other equity instruments of the entity.

AEquity-settled share-based payment

BCash-settled share-based payment

CEquity settled share-based payment with cash alternatives

DCash-settled share-based payment with equity alternatives

18.A method of accounting for share-based payment in which the fair value of the options at the grant date is used to measure compensation expense.

AFair Value Method

BIntrinsic Method

CScientificMethod

DStraight Line Method

19.A method of accounting for share-based payment in which the difference between the exercise price and the market price per share is used to measure compensation expense.

AFair Value Method

BIntrinsic Method

CScientificMethod

DStraight Line Method

20.Under share-based payment arrangement that permit the employees to choose whether to receive cash or equity instruments, whatmethod of accounting isusedto measure the value of the options at the date of grant is

ATotal Fair Value Approach

BResidual Approach

CMiddle Approach

DSingle Approach