Which of the Following Equity Instruments Would Be Considered to Be

question 15

Multiple Choice

Which of the following equity instruments would be considered to be ordinary shares for the purposes of AASB 133?

• A) Ordinary shares that receive a dividend at the discretion of the ownership group or its representatives.
• B) Preference shares that are entitled to a fixed low rate of dividends and an additional dividend when the rate of dividend to other classes of shares exceeds that fixed rate.
• C) Ordinary shares that have the right to a cumulative fixed rate of dividends.
• D) Ordinary shares that receive a dividend at the discretion of the ownership group or its representatives and preference shares that are entitled to a fixed low rate of dividends and an additional dividend when the rate of dividend to other classes of shares exceeds that fixed rate.
• E) All of the given answers.

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Definitions:

Lithosphere

The lithosphere is the rigid outer layer of the Earth, encompassing the crust and the uppermost part of the mantle, characterized by its solid state and involvement in tectonic activities.

Upper Mantle

The part of the Earth's mantle that lies just beneath the lithosphere, involved in tectonic movements and convection processes.

Crust

The outermost solid shell of a rocky planet, dwarf planet, or natural satellite, distinct from the underlying mantle.

Geologist

A scientist who studies the Earth, including its composition, structure, processes, and history, often focusing on minerals, rocks, and geological features.