Financial Statements and Accounting Standards

1. The existence of a limited liability company means the:
I. company’s members are liable for only a limited amount of business debts
II. company has a legal existence distinct from its owners
III. company may raise large amounts of funds by issuing shares.

| I only |

| I and II only |

| II and III only |

| I, II and III |

2. The two main types of companies permitted to be registered under the Corporations Act are:

| a private company, and a proprietary company |

| a public company, and a trade union |

| a proprietary company, and a public company |

| a proprietary company, and a partnership |

3. A proprietary company must have at least one shareholder and cannot have more than:

| 100 shareholders |

| 50 shareholders |

| 20 shareholders |

| 10 shareholders | 4. | The share capital of a company may consist of: | ordinary shares either fully paid or partly paid issued by the company | | mortgages issued by the company | | secured and unsecured notes issued by the company | | debentures issued by the company | | |
5. The main role of the trustee for debenture holders is to protect the interests of: | shareholders | | debenture holders | | directors | | auditors | | |
6. The main functions of the Financial Reporting Council include:
I. overseeing the process for the setting of accounting standards of the AASB
II. determining the AASB’s broad strategic direction
III. monitoring and reviewing the level of funding for the AASB
IV. directing the AASB in relation to the development or making of a particular standard
V. the power to veto a standard recommended by the AASB. | I, II, III and V only | | I, II, and III only | | I, II, IV and V only | | II, III, IV and V only | | |

7. The functions of the Australian Accounting Standards Board include:
I. development of a conceptual framework for the purpose of evaluating