Reference no: EM132773861
Problem 1: When an acquiree liquidates, the accounts of the acquiree are transferred to which two accounts?
Select one:
Option 1: Liquidation and shareholders' distribution
Option 2: Share capital and retained earnings
Option 3: Cash at bank and liquidation
Option 4: Shareholders' distribution and retained earnings
Problem 2: Which of the following statements is incorrect?
Select one:
Option 1: The financial statements of an entity may be recorded in a foreign currency and translated into Australian dollars for the purpose of combining those statements with the financial statements of a related Australian company
Option 2: The financial statements of an Australian company may be prepared in Australian dollars and translated into a foreign currency for presentation purposes.
Option 3: The relevant accounting standard applied in translating financial statements into another currency is AASB 121/IAS 21 The Effects of Changes in Foreign Exchange Rates.
Option 4: Not many companies in Australia have operations in both Australia and overseas locations
Problem 3: In a consolidated group of entities, control over the subsidiaries in the group:
Select one:
Option 1: requires 100% ownership of the subsidiaries' shares
Option 2: can be shared with other entities
Option 3: can exist where the rights are purely protective rights
Option 4: Cannot be shared control.
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