Question 11 1 Point When making a transfer from a general reserve to retained earnings, which of the following journals could be used? DR Transfer to general reserve CR General Reserve DR Retained earnings CR General Reserve DR General Reserve CR Transfer to general reserve DR D General Reserve CR Retained earnings Question 12 Which of the following is not one of the main accounts used for liquidation? A liquidation B) liquidator's distribution shareholders' distribution o D) lquidator's cash Question 13 1 Point Under a members' voluntary winding up, the directors of the company are required to prepare which of the following documents: 1. Statement of affairs 2. Summary of affairs 3. Preliminary liquidation report 4. Declaration of solvency (A) I and IV 1,111 and TV and m Ill and IV Question 14 The main purpose of the liquidation account is to: A) show the capital amount due to contributories. B) show the final cash payment to each class of contributory. calculate the deficiency or surplus on liquidation. record additional calls made on shareholders. Question 15 1 Point XYZ Ltd was registered as a company on 1 July 2013. On 4 July 2013, ABC Ltd issued a prospectus offering 200 000 ordinary shares at an issue price of $5.00 each. payable $3.00 on application and $2.00 on allotment. Applications closed on 1 August 2013 with the company having received applications for 220 000 shares After application but prior to allotment the balance in the application account would be: $1 000 000 credit S660 000 debit 5660.000 credit. 5600 000 credit Question 16 1 Point Blue Star Ltd was registered as a corporation on 1 July 2013. On 4 July 2013. Blue Star Ltd issued a prospectus offering 200 000 ordinary shares at an issue price of $2.50 each, payable $1.50 on application and $1.00 on allotment. Application closed on 1 August 2013 with the company having received applications for 220 000 shares. The shares were allotted on 15 August 2013, with the over-subscription amount being refunded to unsuccessful applicants. All allotment monies were received by 31 August 2013 After application, and prior to allotment, the balance in the Application account would be: A $330 000 Credit $330 000 Debit 5300 Credit 5300 000 Debit Question 17 1 Poi Which of the following statements is not correct in relation to cumulative preference shares? Holders of cumulative preference shares are guaranteed a dividend every year. B Undeclared cumulative preference share dividends accumulate, or carry forward, to future periods The accumulated amount of any cumulative preference share dividend plus the current year's preference dividend must be paid before any dividend can be paid to ordinary shareholders. D Cumulative preference share dividends that are not declared in the year they are due are called dividends in arrears. Question 18 The main role of the trustee for debenture holders is to protect the interests of: A) directors. B debenture holders. suppliers. employees. Question 19 Information in a company's financial statements is considered to be reliable when it: 1. is relevant to the decision making needs of users 2. represents faithfully the financial position, financial performance and cash flows of the entity 3.is neutral 4. is prudent 5. reflects the economic substance of transactions, other events and conditions 1,11,111. IV and v (Bili IV and V only 1.H. ill and tv only DI and IV only Question 20 1 Point Accounting standards approved by the Accounting Standards Review Board (ASRB) had: the force of law under the Companies Act, unless the companies could show that, by complying with any particular standard, the company's financial reports would not show a 'true and fair view". the force of law under the Companies Act, and their application was mandatory at all times. no legal backing under the Companies Act, although almost all companies followed their guidance. no legal backing under the Companies Act, and their application was optional . Question 21 The certificate of registration issued by the Australian Securities and Investments Commission is valid: A) for 15 years. (B) for 12 months only and must be renewed annually, for a maximum period of 5 years. until the company is deregistered. Question 22 The AASB has reported to the Financial Reporting Council (FRC): A) Since 2001 B Since 2000 Since 1999 D Since 2001 Question 23 According to AASB 118 Revenue, revenue from services can be recognized when: 1. The amount can be measured reliably. 2. It is probable that the economic benefits will flow to the entity. 3. The stage of completion can be reliably measured. 4. The costs incurred and the costs of completion can be measured reliably, A ll and I only ( 1 and 11 only C 11 and IV only D I, II, III and IV. Question 24 For a company, retained earnings representi contributed capital from shareholders B) net cash retained by the company before any payment for dividends to shareholders profits retained by the company before tax is paid to the government D profits retained by the company after payment and provision for dividends, and after any transfer to and from reserves. Question 25 The main functions of the Financial Reporting Council include: 1. overseeing the process for the setting of accounting standards of the AASB. 2. determining the AASB's broad strategic direction. 3. monitoring and reviewing the level of funding for the AASB. 4. directing the AASB in relation to the development or making of a particular standard. 5. the power to veto a standard recommended by the AASB. A 11, III, IV and V only BIH, Ill and V only 1,1, 1 and V only ill, and ill only