6. When shares are issued, accounts such as the application, allotment and call accounts are use.

REQUIRED

Describe, respectively, whether these accounts are assets or liabilities (or neither).

7. Determine whether the following items would be classified and recorded as liabilities;

(a) provision for repairs

(b) provision for long-service leave

(c) dividends payable

(d) a guarantee for the debts of a subsidiary.

8. It is often argued that managers would prefer to show lower levels of debt than higher levels of debt. Why do you this this might be so?

9. Explain how the release of a new accounting standard could potentially cause a reporting entity to violate an existing debt covenant.

10. According to Legitimacy Theory, what are the implications for an organization that fails to comply with the expectations held by society?

11. In relation to schemes aimed at reducing carbon emission, briefly explain how a cap-and-trade system operates.

12. Legitimacy Theory relies upon the theoretical notion of a social contract. What is a social contract and why is it link to Legitimacy Theory?

13. What are some of the motivations that might drive corporate managers to voluntarily disclose social and environmental performance information?

14. What is personal social responsibility and what is the role of business educators in instilling the idea of personal social responsibility and what is the role of business educators in instilling the idea of personal social responsibility within students?