When Accounting for the Issue of Shares Placing Application Monies

question 40

Multiple Choice

When accounting for the issue of shares placing application monies in a separate cash trust account is required:

• A) to meet the obligation by the company to remit the funds to ASIC.
• B) before the share issue is finalised the money does not belong to the company and some or all of it may need to be refunded.
• C) because the bank requires it.
• D) it is administratively easier for the company if the money is placed in a separate account.

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Definitions:

Order Taker

An individual or system in charge of receiving and processing customer orders without engaging in proactive selling activities.

Routine Orders

Regular, repeated purchase orders for goods or services that are used on a consistent basis in a company's operations.

Customer Problems

Issues or challenges faced by customers that businesses aim to solve through their products or services.

Inside Order Takers

Employees who handle orders from customers mainly through indirect channels such as phone or email, rather than through face-to-face interaction.