Question 2

The effect of a bonus issue to all shareholders on (a) net asset backing per share, (b) each shareholder's share of net assets and (c) market capitalisation is:

A. (a) the net asset backing per share will decrease; (b) each shareholder's share of net assets will remain the same; (c) evidence suggests that on average the market capitalisation will increase. B. (a) the net asset backing per share will increase; (b) each shareholder's share of net assets will increase; (c) evidence suggests that on average the market capitalisation will remain the same. C. (a) the net asset backing per share will decrease; (b) each shareholder's share of net assets will decrease; (c) evidence suggests that on average the market capitalisation will remain the same. D. (a) the net asset backing per share will remain the same; (b) each shareholder's share of net assets will decrease; (c) evidence suggests that on average the market capitalisation will decrease.

Question 3

Reserves recorded in the equity section of the statement of financial position:

A. Represent an amount of cash put aside for future projects. B. Are created from excess profits that are not available for distribution as dividends. C. May be established by transferring amounts from retained profits. D. Will not have an impact on the total equity reported in the equity section of the statement of financial position when created.

Question 4

Which of the following items are considered share-based payment transactions within the scope of AASB 2?

A. Share dividends to employees who are shareholders of the entity. B. Goods acquired from a supplier on credit to be settled in cash. C. Services provided by an employee to be settled in equity instruments. D. Purchase of non-current assets on credit to be settled in cash.

Question 5

AASB 2 requires all share-based payment transactions to be recognised at:

A. Grant date. B. Balance date. C. Exercise date. D. Settlement date.

Please provide all answer its MCQ