I need these questions to be answered with further explanation. I am preparing myself for my exam.

Section A: 30 Marks 5. In accordance with IFRS, what is the appropriate classification for the conversion of preference shares to ordinary shares? This section contains 15 Multiple Choice questions worth 2 marks cach. Answer this section on the special multiple choice grid provided. You are to spend about 45 minutes on this section. A. Inflow in investing activity. B. Inflow in financing activity, C. Non-cash investing item. D. Non-cash financing item. 1. Accounts that represent cash or cash equivalents include: 6. Aladdin Ltd sells inventory for a profit to its subsidiary Jasmine Ltd to be used as machinery in Jasmine Ltd's production process. The consolidation worksheet of Aladdin Ltd with respect to this transaction only should not include: A. bank overdrafts. B. accounts receivable. C. short-term money market deposits. D. bank overdrafts and short-term money market deposits. A. a debit to sales. B. a credit to cost of sales. C. a credit to inventories. D. a credit to machinery, 2. Changes in an entity's equity between the beginning and the end of the reporting period reflect the increase or decrease its: A. liabilities during the period. B.net profit for the period. C. assets during the period. D. net assets during the period. 7. Banksia Ltd is in the process of completing its financial reports for the period ended 30 June 2014 when it becomes public knowledge that company income tax rates are to be increased and that the increase is to apply retrospectively to the financial year just completed. What treatment is required for this item according to IFRS? A. No disclosure is required because the information is publicly available. B. The potential effect on the accounts should be disclosed in the notes to the financial statements. C. If material, the financial statements should be adjusted to reflect the impact of the event. D. An adjustment to the statement of comprehensive income should be made, but only note disclosure for the statement of financial position since it is prepared as at the reporting date. 3. 'Exchange rate' is: A. not defined in AASB 121. B. the difference between the currency rates. C. the rate at which one currency can be exchanged for another. D. all of the given answers. 8. Components of other comprehensive income' would include: A. net profit reported in the statement of profit or loss and other comprehensive income. B. net operating cash flows reported on the statement of cash flows. C. changes in revaluation surplus. D. net operating cash flows reported on the statement of cash flows, plus total of all income and expenses recognised directly in equity. 4. Gowanland Co Ltd is being sued over damage to farmland as a result of an accident in which poisonous chemicals were mixed with fertiliser. At reporting date there was no information about the court decision and a contingent liability had been disclosed. Subsequent to the reporting date, the court handed down its decision and upheld a substantial claim for damages. According to IFRS how should this event be treated in the financial statements? A. The contingent liability note should be extended to provide additional information based on the after-reporting-date event. B. The contingent liability note should remain as it is because it reflects the situation existing at reporting date. C. The contingent liability can now be measured reliably and is no longer contingent, so should be recognised in the financial statements as a provision. D. The treatment would depend on whether or not the entity had received advice from solicitors regarding the likely success of an appeal