Reference no: EM133012092
Questions -
Q1. Some items are typically not allowable tax deductions but are recognised as an expense for accounting purposes. Which of the following items are of that type?
A. Depreciation expense of property, plant and equipment
B. Impairment of goodwill
C. Warranty costs
D. Cost of long service leave
Q2. Melissa Ltd purchased a packaging equipment. The manufacturer of the equipment stated in marketing materials that the equipment is able to complete 800 000 packages in its operating life. Melissa Ltd believes that the life of the equipment is likely to be 15 per cent less than the manufacturer specified. The equipment cost $100 000 and is expected to have a residual value at the end of its useful life of $30 000. The equipment packaged 60 000 units this period. What is the depreciation charge for this period (rounded to the nearest dollar)?
A. $6 176.47
B. $5 250
C. $7 500
D. $7 058.80
Q3. Bullion Ltd makes a 1-for-4 rights issue to its 'C' ordinary shareholders. The rights allow holders to obtain 'C' ordinary shares for $3.20 per share payable in full on application. The holders of 44 000 'C' ordinary shares accept the rights offer by the expiry date. The shares are duly allotted and all money is received.
What are the general journal entries to record these transactions?
A. Dr. Share capital: 'C' ordinary shares 35 200
Cr. Cash 35 200
B. Dr. Cash 140 800
Cr. Share capital: 'C' ordinary shares 140 800
C. Dr. Cash 35 200
Cr. Share capital: 'C' ordinary shares 35 200
D. Dr. Share capital: 'C' ordinary shares 140 800
Cr. Cash 140 800
Q4. Fair value measurement techniques:
A - Net present value of future income stream
B - Quoted share prices in an active market
C - Indirect observable real estate prices in a less active market
Please arrange in order of Fair value hierarchy Level 1, Level 2 and Level 3 inputs.
A) B, C and A
B) A, B, and C
C) C, B, and A
D) B, A, and C
Q5. The Corporations Act requires which of the following statements to be included in a Directors' Declaration?
A. Whether in their opinion the financial statements comply with accounting standards and the Corporations Act
B. Whether in their opinion the financial statements give a true and fair view of the financial position and financial performance of the entity
C. Whether of not in their opinion, when the declaration was made, there were reasonable grounds to believe that the Company would be able to pay its debts as and when they fall due
D. All of the options listed here are correct
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