Multiple Choice... thank you

Question 7)

Which of the following statements best describes the link between adherence to Accounting Standards (AASBs) and the information contained in a General Purpose Financial Report (GPFR)?

A. Adherence to AASBs will ensure the provision of the minimum amount of information that will assist users' decision making.

B. All of these statements are correct.

C. Adherence to AASBs will ensure information has been prepared applying the same accounting policies across all reporting entities.

D. Adherence to AASBs will ensure information is accurate.

E. Adherence to AASBs will ensure information is easy to understand.

Question 8)

A shareholder of Aferengyos Ltd holds 10,000 shares representing 2% of the total number of shares issued. These shares were issued for $16 each but the shareholder has only paid $7 for each share. Aferengyos Ltd has been wound up with outstanding debts of $9 million.

State, to the nearest whole dollar, the amount of the shareholder's liability.

Question 9)

ROA (return on assets) is measured by Earnings before interest & tax / Average total assets

Assume ROA is less than 100% and that the cash balance remains positive.

State the effect the following event occurring on the reporting date would have on this ratio.

EVENT: The purchase of a non-current asset funded entirely by a long-term interest-only loan

Would it: Decrease, Increase or have No Change?

Question 10)

Asset turnover is measured by Sales revenue / Average total assets.

State the effect the following event occurring on the reporting date would have on this ratio.

EVENT: The recognition of the annual amortisation charge

Would it: Decrease, Increase or have No Change?