Question

 

1. Members of a company are allowed to sell their shares at any time, provided they obtain permission from the other members.

2. Australian accounting standards are now identical to their equivalent International Financial Reporting Standards (IFRSs).

3. Prior to the allotment/issue of shares, the balance in the application account represents a liability of the company to the applicants.

4. If a company forfeits shares and the company’s constitution is silent in relation to reissue of the shares, the company is entitled to keep any balance in the account after reissue, payment of unpaid calls and interest and administrative costs.

5. The acquisition date is the date on which the contract between the acquirer and acquiree is signed.

6. General purpose financial statements are prepared for users who depend on those reports for information to enable them to make decisions about the allocation of scarce resources.

7. Winding up of a company only ever arises from the issuing of an order from the court.

8. The elimination of the full effects of intragroup transactions is required in the preparation of consolidated financial statements.

9. An entity must present a complete set of financial statements at least annually.

10. The consolidation process involves making adjustments to the individual financial statements and ledger accounts of the entities within the group.

Answer 1

I will be providing reason fro the answers which are false

1. Members of a company are allowed to sell their shares at any time, provided they obtain permission from the other members.

Answer:- False

Reason:- No permission required from other members for sale of own shares

2. Australian accounting standards are now identical to their equivalent International Financial Reporting Standards (IFRSs).

Answer:- False

Reason:- There are additional disclosure requirements, futher IFRS is only for profit-seaking-entities

3. Prior to the allotment/issue of shares, the balance in the application account represents a liability of the company to the applicants.

Answer:- True

4. If a company forfeits shares and the company’s constitution is silent in relation to reissue of the shares, the company is entitled to keep any balance in the account after reissue, payment of unpaid calls and interest and administrative costs.

Answer:- True

5. The acquisition date is the date on which the contract between the acquirer and acquiree is signed.

Answer:- False

Reason:- It is the date when acquirer obtains control

6. General purpose financial statements are prepared for users who depend on those reports for information to enable them to make decisions about the allocation of scarce resources.

Answer:- False

Reason:- It is for the users who cant command information from the entity, issuing general purpose financial statements.

7. Winding up of a company only ever arises from the issuing of an order from the court.

Answer:- False

Reason:- There are plenty up of other ways to initiate winding up

8. The elimination of the full effects of intragroup transactions is required in the preparation of consolidated financial statements.

Answer:- True

9. An entity must present a complete set of financial statements at least annually.

Answer:- True

10. The consolidation process involves making adjustments to the individual financial statements and ledger accounts of the entities within the group.

Answer:- False

Reason:- Individual ledgers accounts of the entities within the group not effected.