6) When a public corporation offers its shares to a supplier in exchange for a machine, which of the following dollar amount should be used to record the transaction, assuming that all of the following amounts are readily determinable?

Select one:

a. The fair value of the shares traded on the stock market on the date of the exchange

b. The fair value of the machine on the date of the exchange

c. The product of the number of shares issued and their par value

d. The price that the supplier originally paid for the machine

7) Which of the following statement(s) is/are correct regarding reporting options for private corporations?

Select one:

a. None of the available choices

b. IFRS requires fewer disclosures in financial reporting than ASPE.

c. A private corporation may choose to use ASPE rather than incur the high costs of retraining staff and converting to IFRS.

d. ASPE can be much more technically complex than IFRS.

8) How would retained earnings be affected by the declaration of cash dividends common and stock dividends?

Select one:

a. Decrease and No effect

b. No effect and Decrease

c. Decrease and Decrease

d. No effect and No effect

9) What type of account is Stock Dividends Distributable?

Select one:

a. Equity

b. Contra liability

c. Liability

d. Asset

10) Which of the following is not a characteristic of a corporation?

Select one:

a. Mutual Agency

b. Unlimited life

c. Ability to raise capital

d. Separate legal existence