1.When a newly established company issues shares for the first time, the directors will issue the shares at:
a. a price established in consultation with ASIC.
b. the market price.
c. the price of $1 per share.
d. the highest price that they expect that the shareholders will be prepared to pay.
The objective of allocating profits and losses is to reward each partner fairly for the resources and services contributed to the partnership. Which of the following factors would not be directly relevant in negotiating a profit and loss sharing agreement for a partnership?
a. Work done by each partner in the partnership.
b. Capital contributed by each partner to the partnership.
c. The size of each partner's non-partnership assets.
d. The risks assumed by each partner.
5000 $100 debentures were redeemed in cash upon maturity at their nominal value. The accounting entry to record the redemption is:
a. DR Debentures redemption reserve $500 000; CR Debentures $500 000
b. DR Bank $500 000; CR Debentures $500 000
c. DR Debentures $500 000; CR Bank $500 000
d. DR Debentures $500 000; CR Debentures redemption reserve $500 000
The basic entry to provide for company income tax at the end of the financial year is :
a. DR Retained earnings; CR Non-Current tax liability
b. DR Income tax expense; CR Cash at Bank
c. DR Income tax expense; CR Current tax liability
d. DR Current tax liability; CR Income tax expense
Under IAS 37/AASB 137, which of the following provisions is not regarded as a liability?
a. Provision for long-service leave
b. Provision for doubtful debts
c. Provision for warranties
d. Provision for onerous contracts
Which of the following would not be defined as a liability under the Conceptual Framework?
a. Salaries owing to managers.
b. A loan from a financial institution.
c. An arrangement to pay a quarterly bonus commission to salespersons for achieving sales over a certain level.
d. Money owing to a supplier for goods purchaseD.
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