Reference no: EM132974323

 

Questions -

Q1. X COMPANY ISSUED 10,000 ordinary share of 50 par value and 20,000 convertible share of 20 par value for a total of 1,000,000, at this date, the ordinary share was selling for 55. what amount should be recorded as preference share premium?

150,000

200,000

100,000

50,000

Q2. Statement 1: Demographic assumption includes both actuarial assumption and financial assumption

Statement 2: the discount rate used in financial assumption is high quality bonds in the absence of market yield on government bonds

None of the statements are true

Both statements are true

Only first statement is true

Only second statement is true

Q3. In accounting for compensated absence, the difference between vested rights and accumulated rights is

Vested rights carry a stipulated dollar amount that is owed to the employee;accumulated rights do not represent monetary compensation

Vested rights are normally for a longer period of employment than are accumulated rights

Vested right are not contingent upon an employee's future service

Vested rights are a legal and binding obligation on the company, whereas accumulated rights expire at the end of the accounting period in which they arose