11.Which of the following statements is correct in relation to the recognition of expenses?
a.Under the Conceptual Framework, the recognition of expenses is based on the matching process.
b.The recognition of expenses is not subject to the same degree of regulation as revenue.
c.Under the Conceptual Framework, recognition of expenses is not tied to the matching process.
d.Individual accounting standards do not need to be consulted to determine the appropriate treatment for particular types of expenses.
12.According to AASB 101, an entity will classify a liability as current when:
a.it expects to settle the liability outside its normal operating cycle.
b.it expects to settle the liability within its normal operating cycle.
c.the entity has an unconditional right to defer the settlement of the liability for at least 12 months after the reporting date.
d.the liability is due to be settled more than 12 months after the reporting date.
13.AASB 101 requires which of the following in relation to the classification of expenses?
a.Expenses to be classified by either nature or function.
b.Expenses to be classified by nature, unless classification by function is more relevant.
c.Expenses to be classified by function, unless classification by nature is more relevant.
d.Expenses to be classified by both nature and function.
14. In relation to the measurement of an asset, the amount of consideration given to acquire the asset at its acquisition date is known as its:
a. historical cost.
b. current cost.
c. realisable value.
d. present value.
15. Which of the following categories of revenue is not included in AASB 118 Revenue?
a. Revenues from services rendered
b. Gains from asset revaluations
16. Which of the following statements is correct in relation to the payment of dividends?
a. Dividends can only be paid if a company has generated a profit in the current period.
b. The payment of dividends is regulated by the Corporations Act.
c. A company can only pay an interim dividend if its constitution allows it.
d. Preference dividends must be paid on a cumulative basis.
17.According to the Corporations Act, dividends may:
a.only be paid to shareholders once a year.
b.only be paid out of the current year’s profits of a company.
c.be declared and paid to shareholders irrespective of whether a company has accumulated losses.
d.be paid if the company has an excess of assets over liabilities.
18. The appropriate accounting entry to record the declaration of a bonus dividend out of the Revaluation Surplus account is which of the following?
a. DR Bonus dividend
CR Asset revaluation surplus
b. DRAsset revaluation surplus
c. DRAsset revaluation surplus
CR Share capital
CR Share capital
19.Dividends declared after the reporting period:
a.meet the criteria for recognition as a liability.
b.satisfy the criteria for recognition as an expense.
c.are recognised in the statement of financial position as they meet the definition of equity.
d.do not meet the AASB 132 recognition criteria for liabilities.
20.Which of the following statements is not correct in relation to cumulative preference shares?
a.Holders of cumulative preference shares are guaranteed a dividend every year.
b.Undeclared cumulative preference share dividends accumulate, or carry forward, to future periods.
c. 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.