Consider the Following Five Statements

question 1

Multiple Choice

Consider the following five statements:
i.The expected return of a portfolio of shares is the weighted average of the expected returns for each share.
ii.All other things being equal,a cum-dividend share price should fall be the amount of a dividend that is paid.
iii.One of the effects of dividend imputation is the removal of 'double taxation' of company profits that are distributed as dividends.
iv.For a shareholder with a marginal tax rate that is lower than the company tax rate,no tax will be payable on the fully franked dividend received,and the excess credit can be applied against other assessable income.
v.In a one-for-nine bonus issue,if the cum-bonus price was $10,then the theoretical ex-bonus price would be $9.
Which of the following is correct?

• A) i, ii, iii are true and iv and v are false
• B) i, and iii are true and ii, iv and v are false
• C) i, ii, iii and iv are true and v is false
• D) i and ii are true and iii, iv and v are false

Recognize differences in financial reporting requirements between US GAAP and IFRS, especially concerning contingent liabilities and probability interpretations.

Understand the accounting treatment and financial statement presentation of cash flows, including operating, investing, and financing activities.

Grasp the concepts of deferred tax assets and liabilities and their impact on financial statements.

Understand the classification and types of pesticides including chlorinated hydrocarbons, carbamates, pyrethroids, and organophosphates.

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Definitions:

Miranda Rights

Miranda Rights are a set of constitutional rights read to a suspect in police custody, ensuring they are aware of their rights to silence and legal counsel.

Constitutional Rights

Rights protected under the federal constitution that guarantee individual freedoms and legal protections.

Court Of Law

A court in which the only remedies were things of value, such as money. Historically, in England, courts of law were different from courts of equity.

Criminal Proceedings

Judicial processes in which crimes are prosecuted, involving stages such as arrest, charge, trial, and possibly sentencing or appeal.